Given the amount of work, time, money, scrolls, collecting and "chance" that goes into the Bio Pet, I have to agree. That damage limit is sad. I will not be producing anymore bio pets, as they just do not seem to stack up against other "easier" options for a sustainable tank pet (Cu's).
If this damage cap is static, the demand for organics and other bio componets (tinkering scrolls, tinkering clothing) will plummet.