It's not that easy if they are using the FAT filesystem. It's a hard limit.
The FAT filesystem stores the root directory differently than subdirectories. It has a fixed size and goes in a specific location on the media. Even MS couldn't expand it without breaking existing software (but the FAT32 and NTFS filesystems do not have this limit).
Now, if they are indeed using the FAT filesystem and ran into the root directory limit, they could easily solve it by storing the files in subdirectories under the root - the number of files allowed in subdirectories is limited only by the amount of space available.