Nowadays I think PBEM players often limit Z fire to a few shots per unit, maybe its not allowed at all - in that case there might be a point to limeting the number of troops in a hex...
For those that might not play PBEM Z fire is the so called 'area fire' allowing the troops to fire into hexes out of direct line of sight.
While the AI does not use it a human player can (use or abuse

),
- and it is hugely effective. It will cripple units, esp. moving infantry and cause most, even dug in units, to a state of retreat/rout if you blast them enough.
If you pile up units in a few hexes it will be a very juicy target for Z fire.
Experienced PBEM players of the type I met when I first started to PBEM over ten years ago were experts at the use of Z fire. The used all kinds of creative SP-Mortar, SPA, SP Rocket, HMG setups taging along the assault columns, maybe not the most realistic use of SP artillery but very effective in game turns.
Against the AI piling up units in the same hex might be useful, getting more OP fire as enemy units appear in their line of sight, but against a human opponent in can be a terrible disadvantage.
