I did ask Fiio about why OTG storage couldn't scan into library. It was clear that they hadn't anticipated people using OTG an a permanent or semi permanent basis. They said they were worried that each time somebody disconnected or connected their OTG storage the device might go into long automatic library scans, thus annoying the hell out of users. No mention was made to me of file limits. I think it would be easy to add an option into the menu where you could choose if OTG was scanned or not each time a scan is run. Simple.
Fiio (and nearly all the other DAP manufacturers) don't seem to realise that capacity is a massive selling point. With hi res files being so large, you need huge capacity to hold a decent sized collection, and swapping cards in and out is a complete pain in the butt (Pono are you listening). Getting OTG storage working in exactly the same way as the TF cards would be a big advantage for Fiio. If they can't get OTG to work properly, then give us 4 card slots and we can then decent capacity that way.