bentheoandrews: Whoaaaa, everyone calm down. Just to clarify, I've got this app on my iPad 2. I can load and work with jpegs from my Sony NEX 5N with no trouble (larger than 1600x1600) - layered up and edited 4 images in a project of a snowboarder jumping and worked fine with no lag. I think the pixel limit is output size.
Yes there is a limit on output size I believe, it is the same as the one on snapseed, which is what I use on my iPad1