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I currently have 27 icons on my 17-inch G4 iMac's bottom dock. As you ad more it just makes all of them smaller to fit. I've yet to find a limit. On the other hand I only keep stuff in the Dock that I use frequently to semi-frequently. A lot of people keep an icon to System Preferences in the Dock, since I don't use it that often and since I can easily get to it from the Apple menu, I don't keep it in the Dock.
 
I only have the Finder, 6 programs, and 3 folders in my dock. Not sure why one would want to clutter it up?

I don't consider it clutter, but convenience. There is an ulterior motive though, I've been a Mac user from back before OS X and one of the things I dislike about OS X is that the items in the Dock are always changing position depending on what's in it, what programs are running etc. By "filling" my Dock from Desktop side to Desktop side, it's not moving around all the time. The items change size depending on what's running but the Finder is always at the far left and the Trash is always at the far right. Makes it easier to go right to where something is when it's always in the same relative position.
 
My dock currently holds over 60 apps and still has the ability to hold even more. The auto-zooming effect makes it easy to select which ones to run without much hassle.
 
idk i bet it would be more that you could possibly put there, but here is my dock:
 

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So how many icons can the dock actually hold?
My MacBook Air currently holds 29 items in the dock and can very easily hold many more. I don't think there is a limit, and if there is, its probably no more apps than you have on your Mac.
 
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