As a prototyper I actually disagree with this. The bottle neck on production keeps value high, and as the game progresses will mean that more players will need to have high tier research in order to meet demand. While I personally would love to be able to produce more right now, I'm fairly certain that once the number of players with good research grows, it would oversaturate the market.

Alts alts alts.

Fixed.

No, it does not limit the people capable of creating high tier Prototypes because it depends on your knowledge base. It only limits the number of prototype production lines you can run at the same time.

What you suggest is some mass prototype production. Apart from the contradiction (mass & prototype), this could be achieved either by allowing more lines at the same time (extensive) or more items per line (intensive or programmed). I would prefer the latter not just because I have posted this idea before (http://forums.perpetuum-online.com/topic/206/prototype-production-extensions ), but it makes more sense. Do you want to create more different prototypes, or more of the same kind at the same time? I guess it's the latter.

I support mass prototype production because the current system penalizes those who run through the hassle of researching kernels and creating a prototype. Others just buy one item from the market and then reverse engineer and mass produce it. There should be more benefit from the effort to research kernels.

The prototypes will remain expensive because their resource requirement is a great deal larger. So you will hardly ever be able to keep 40 or even more prototype lines running all the time. The same applies to intensive/programmed prototype production.
It simply wouldn't be such a pain to do 5 or more prototypes in a row.

This is only true for standard (T1) items, and so not true for higher tiers. You cannot take a T4 module and RE it.