What Riva wrote about the 65000 vertices limit issue was about the BODY_H object of a car for MM2, that can't exceed that number of vertices to work in-game. He explained a way to avoid this, that's by splitting parts of it as breakable objects. This limit affects all the objects, but when it happens most of the times it's only about the BODY_H object. However yes, there are some cars examples that exceed that number of vertices and have more than 100000 polygons, always only for the BODY_H object.
Essentially all depends by the way used to make the model: too much and little polygons concentrated in a part and also the polygons placement, I would say the one that looks like a web, will give problems for its working in-game; the polygons and vertices number doesn't really count. Curiously, when the modeling way is done so, only if the model is called BODY_H happen in-game working problems, not when it's called BREAK01_H:m, for example.
Here's what Midas said about this. The vertices and polygons limits are very high, but the game memory use limits and leaks because of how has been written the game engine can't allow the managing of an amount that can also be way less than that very high value. Then, the graphic cards of the year 2000 weren't powerful and advanced to manage many vertices and polygons, obviously.
Nothing special really. The PKG file format has already been
cracked by fre_ber. Didn't look into it myself though.
Each LOD can have a maximum of 4 ^ 16 (4294967296 or 0x100000000) vertices because the number of vertices is actually stored in a long integer (4 bytes), not a short integer. So this means that there is a memory leak in MM2. The PKG file supports holding more vertices though... In my opinion this shouldn't be fixed as there is no need to have more vertices.
Also if you look at the PKG spec you can see that it isn't based on 3DS at all.