And worse, if Dolphin misinterprets a pseudo-random random binary file as a Targa image, even the tinest of files can be interpreted as an image with millions of pixels and gigabytes in size (even though only the first few pixels are actually present in the file). And malicious binary files can be small but decompress to gigabytes of pixel data as well. So a source filesize limit is insufficient to prevent pathological files from eating RAM.
Unfortunately, it's set to "unlimited" by default...