None of the reasoning I've seen so far touches my answers.
First of all, lets define what limited means. For me, a software tool can be limited in a number of ways: Intuitive design, expandability, productivity, accessibility, commercialisation and performance. Note this is not an exhaustive list.
Intuitive design (or ease of use) - How easy is it to understand how to use the tool, without the help of third-party tutorials.
Expandability - How much work is required in order to change the default template (or default game) to something different.
Productivity - How long does it take to get from A to B in any particular task: map design, resource management, scripting, coding, etc, and what advanced tools are available to improve productivity, i.e. batch tasks or macros.
Accessibility - Does every option have a keybind or alternative way to use it, are the user inputs configurable. Can you tab through menus and confirm / cancel using space and escape?
Commercialisation - How easy is it to take 'your game', and turn it into a proper commercial product, including polish, options menus, data / error analysis etc.
Performance - How much has to go on on-screen or behind the scenes before the game performs sluggish, and most importantly, are there ways to identify performance hotspots?
Now I've described each of these areas, I'm going to give my view of where RPG Maker fits with them.
- Intuitive Design. I'd give RPG Maker a 9/10 for intuitive design. The new versions, Ace & MV have a number of features that aren't very well explained however, such as luck or TP. What does luck mean exactly? It seems strange to me that the exact formula for combat isn't displayed anywhere. This is not a major issue however, and I consider RPG Maker the best in the business in terms of intuitive design.
- Expandability. Thanks to the many plugins available, RPG Maker has always been decent at expandability in terms of plugins. However troops' battle events are rather limited in what conditions are available. In fact events are also limited in conditions and triggers; a feature that I'd expected to be expanded more over the years than it has. The fundamental issue with this is the fact that the interface for RPG Maker itself cannot be modified or added to (afaik). Comparing this with an engine like Unity, where you can write UI extensions, makes RPG Maker feel rather limited in this way.
- Productivity. Getting started, like level design and resource management are top-notch, and you can whip up a prototype in a matter of minutes. However getting past the prototype phase is a bit more work, and this is where I feel RPG Maker is lacking a bit. Aspects like battle animations or event behaviour are often cumbersome to develop, because you end up building workarounds to the lack of UI options. When I'm working with events in MV, I find myself writing random javascript functions to avoid having to construct 10 or so conditional branches to achieve the effect I want. There are also very few batch tasks available, and macros are non-existent. RPG Maker also doesn't allow for hot-swapping, which has been common practice in the software industry for years (although strangely limited in game engines), but would be a massive time-saver if RPG Maker could do this. And I mean massive: just imagine being able to tweak event commands while the game is running and see the results the moment you click apply.
- Accessibility. RPG Maker is inconsistent in terms of accessibility. Sometimes you can tab through options, sometimes you can't. Some buttons have keybinds, others don't. There are also no keybind/input settings for using the tool (correct me if I'm wrong). As an example, in MV try creating an event that sets switch 05 without touching your mouse. You can do everything using tab, enter & arrow keys except pick which switch you want to set.
- Commercialisation. Out of the box, RPG Maker games do not provide keybind menus, although there may be plugins that enable this. If you wanted to include all of the number keys as a method of triggering abilities, or allow the player to configure their own quick-panel (like in Elder Scrolls for example), this gets more complicated, and in order to even interact with them you'd have to start writing script code everywhere. There also appears to be no method of data analysis, so that when the game crashes for some users that information is sent to the developer. In fact, RPG Maker is not at all robust when it comes to missing assets or errors in code. At the very least, the released version of the game should be able to continue running regardless of these minor issues.
- Performance. I won't bash RPG Maker too much in this regard, since at least with MV, the game can run on a lot of different systems. However, I do feel that certain optimisations could be made regarding events, that it should allow the existence of a lot more of them before it performs sluggish (I have a few ideas for how to optimise them, with my programming background). There is also no feature to analyse hotspots in performance, i.e. if a particular method is being called thousands of times and is the main culprit for performance hits.
Overall I do find RPG Maker to be limited in a number of ways, or at least it can be a hassle sometimes. What's possible and what's reasonable are very different questions, and I find the latter to be just as pertinent. That doesn't mean RPG Maker is bad, I've discussed a lot of cons, but I haven't discussed any of its pros. But as far as answering the question 'is RPG Maker limited', I've given my answer.