Unless I'm missing something in the maths of the dynamic limit, it's going to harm the business if the way it works isn't changed.
I think you're missing something in the maths.
The house edge is the same whatever the bet size, so the bet size doesn't hurt the expected house win rate, it just affects the risk of ruin. And the risk of ruin is managed by dynamically adjusting the maximum bet size to only accept bets they can afford to lose.
If they only accept bets up to 100 when they can afford to (which makes sense) they still make 1.5% (or whatever the edge is these days - it's advertised differently in different places) on average each time they take a bet for 100 BTC.
By the way, here's where I saw it say the house edge is less than 1%:
