The limit should be very out of the way as well. I originally suggested an LOOC limit of 50 so that anyone who is using it as a legitimate way to teach players won't be affected. Players who abuse LOOC will be limited so that we don't have to toggle it for everyone or whatever.
As for the other comments, I personally find people laughing at something that happened IC or whatever as very immersion breaking and kinda lame. I understand that this isn't an opinion that is shared with everyone, but regardless I feel that its still important to mention.