Is there any hard limit or performance issues associated with setting up products with lots of options?
I.e. if a product had several options (e.g. length, diameter, material etc) each with many different values (e.g. 10mm, 20mm, 30mm... M4, M6, M8... mild steel, stainless steel... etc) then it could end up having thousands or even tens of thousands of variants (SKUs). Our product catalogue will eventually look like this, it will have roughly 10 products but each will have so many options that we actually have tens of thousands of SKUs.
Many other ecommerce solutions have limits or performance issues with products having options resulting in more than about 2000 variants. What about Magento?
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Not really. I have project that has about 10000 different attributes and tons of attribute sets. Sure, re-indexing is slow, but otherwise no problems. Handling 10k attributes manually is not an option however.