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Claris
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There is no limit on the size of the UTXO other than the block size as you've described, but your reasoning isn't correct. There is no minimum size of a transaction output, nor maximum number of outputs per transaction. The bulk is limited by the Bitcoin block size of 1MB, or about 50GB per year total additions if the only thing being added was spam outputs.

Volume of outputs is another matter entirely. The smallest possible output is 0 BTC, 0 length, null script. 0000000000000000 00 for a total of nine bytes. If we make a maximum sized transaction (1MB) of these it will have somewhere in realm of 110,000 outputs, with some loss included for inputs and structure. 6 blocks per hour, 24 hours gives 15.8M outputs per day.

Lots of things become unpalatable in Bitcoin when you change the constants.

Claris
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