Yes, burning away the interior surface of your combustion chamber runs into a resource limit pretty quickly, shortly followed by rapid uncontrolled dissociation

Yes, burning away the interior surface of your combustion chamber runs into a resource limit pretty quickly, shortly followed by rapid uncontrolled dissociation. The exhaust colors leading up to that are often pretty, and finally dramatic. There have been rockets that ran lean during the first few seconds, deliberately eroding away a layer of the combustion chamber, to get higher-mass particles into the exhaust while trying to clear the launch tower. The higher-mass exhaust particles gives you less efficiency but more thrust, which is most important just then.