Regarding the $1M limit, the SEC document included comments regarding this limit. It looks like the limit is congressionally mandated. From the proposed rules:

Regarding the $1M limit, the SEC document included comments regarding this limit. It looks like the limit is congressionally mandated. From the proposed rules: Section 4(a)(6) specifically provides for a maximum aggregate amount of $1 million sold in reliance on the exemption in any 12-month period. The only reference in the statute to changing that amount is the requirement that the Commission update the amount not less frequently than every five years based on the Consumer Price Index. Additionally, statements in the Congressional Record indicate that Congress believed that $1 million was a substantial amount for a small business. We do not believe that Congress intended for us to modify the maximum aggregate amount permitted to be sold under the exemption when promulgating rules to implement the statute. Therefore, we are not proposing to increase the limitation on the aggregate amount sold.