One could keep on allocating, but when you consider that HBL only has a little under 8MB of space available you'd start to run out fast. I can't speak for why dimok designed it this way, but I do think that it makes sense when you consider that without extra fiddling, HBL apps will return to the launcher menu rather than the home menu. It was clearly meant to run an app, quit to HBL, then run a different app. I wonder if HBC does this? That seems to be where HBL's inspiration is from...
(random side note: the blue menu with all the homebrew is actually a HBL application, just like any other. There's a backend that's totally separate which handles all the ELF stuff)