I understand the the 3,333 offline track limit is due to the licensing agreements that Spotify has with the music companies. But...other services such as Deezer or Simfy don't have such a limit. Were they just better at negotiating with the Music giants, or what's going on? Come on, Spotify, if they can do it, so can you! Please do away with that stupid limit.
All the music in the Spotify catalogue is licensed to us. Spotify has agreements with the respective rights holders (record companies and collecting societies, and ultimately artists and composers).
This music is precious to them, as it is their source of income. There are a number of restrictions on how the music can be used, and by whom. For instance, high bitrate, offline mode, and mobile streaming are restricted to Premium subscribers.
The limit on the number of tracks that can be synced on a device is another of these restrictions that we are bound to, in order to honour our licensing agreements.