I believe this could be a very a critical error that may surface down the road crashing your application server - (if you don't cater for it)
I have emailed support on this, and it appears they believe its up to the developer to take care of this issue rather than placing a default setting in the configurator
This problem will not appear in your initial testing because its related to how many records reside in the database
When creating a multiple reference in your object and set it to Drop Down, If the number of records in the database are substantial then the server will attempt to load all the records into memory until memory runs out crashing the server.
To prevent this its important to set the maximum "Page Size" in the Drop Down setup.
This may sound trivial, but if the potential exists for the records to grow in the table and this is not set, the server WILL crash one day due to running out of memory resources.
(The developer will also be left scratching his head trying to understand why a perfectly stable application running for 12 months suddenly becomes unstable)