I came across a post which suggests:
Do Not instruct people to add PPAs unless it is necessary
And one of the reason it has mentioned:
There is a finite number of PPAs that a user can add.
Really?
Is there any limit to adding PPA's to the system? Why?
Also, on what factors do the limit depend?
I'm not aware of a number limit, but I do know that as you add more PPAs, you get more twisted and twisted dependency chains and PPAs can/will begin to conflict with each other.
You should only add a PPA if you really need/want what's in it. I, for example, have the webupd8 PPA for ST and a couple of other things, X-Swat, and Kernel edgers.
If someone knows of a numerical hard limit, that would be good to know, but this is the reasoning on why I personally limit myself to a few PPAs.
Edit
Evidently there is a hard limit related to GPG keys, and it is being worked on.
Excerpt:
There is a neat way to squeeze couple of PPAs more through this keyhole of 40...
Look into /etc/apt/trusted.gpg.d and You might find some pairs or triples of same size. Check them with diff and if they are same You can leave only one...
Just to augument the answer given already with example. Suppose you installed A on ppa X. A depends on library libgit2 version 1 and won't work with 2. You install B from ppa Y and upgrades libgit2 to version 2 somehow. You have just screwed app A.
That is simple example but with interdependence web in Ubuntu packages you might end up with dead system. So be careful with PPAs