Could you add an option to reduce merged chests capacity and/or add a cap to capacity?
Main reason for this is game performance - with very big inventories inserting into them will slow down the game considerably.
I find this mod very useful for train resource management but having them go beyond 100's of slots might get performance costly.
To test this take a look at entity update when having a lot of inserters working with big full chest. With very big ones (like 1k slots or more) it might be visible even with one chest.