Hi,
I believe this is an historical reason behind the 8K setting.
Indeed, with X460G2, you can scale way above... in hardware (look at config forwarding internal-tables to find the different limits)
The command you are referencing has nothing to do with HW limit, btw. This is for the SW part (you do speak of config iparp max_entries, right?). You need to keep it above the real network size to avoid iparp cache thrashing.
If you have not enough HW entries, that command would increase the software cache and software forwarding. That must be the reason TAC said it could hurt the performance.
To know your HW usage, look at the output of show iproute reserved-entries statistics.