It is indeed an "artificial" limitation. But maybe not what people think. Let me explain the reason (by copying something I wrote earlier today on another website).
"It's the same reason why M1 and M2 only support one external monitor instead of several.
Apple sells 6k and 5k monitors and those monitors require too much bandwidth to run more than 1 5-6k display plus the device display. M1 and M2 could probably run 2 external 4k displays but not 2 Apple displays.
A12X/Z could probably run 1 4k external display or at the very least 1440p (Dex on Galaxy Tabs, which are weaker than A12X in GPU power, can run 1440p displays plus the device display), but not ultra high resolution displays. So here you go. Apple could have made them work at lower resolutions with third party displays, but why do that when you can push sales of newer iPads? And advertise they can run the pro display XDR? They have done it with M1 (only 1 display), now they are doing it with A12X/Z on another scale (no external display).
"