I have no idea how many is too many. It may not be a problem but the inside second is going to be evaluated once for everything returned by the first. If the first returns 100 results than adding the inner loop could mean that it takes 100 times the time to evaluate. Filters are done pretty well so even with that you may not have any trouble, but if the tiddlers being transcluded are complex or other things are going on it could cause things to slow down.
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