Well - I went to download the beta software and Corsair has in fact defined the dimming behavior if you connect more than 7 devices per side... I answered my own question 🙂
However - note below that Corsair states 'When you hit the seven device soft limit on either channel, you will correctly receive the 'brightness' warning....' Perhaps Im reading literally - but AT 7 - no such warning should be displayed as the side supports 7 without dimming and its on the 8th that dimming should occur.
From the beta software:
The new firmware for the LINK System Hub will allow you to connect up to 12 devices per channel. Once you pass a seven device (238 LEDs) soft limit on either channel, the controller will dynamically reduce the brightness in 10% steps to handle the additional power budget required by each additional device up to 12 total. We’ll apply the same brightness step to both channels even if one of the channels is below the seven device soft limit, that way you have uniform brightness across devices.
When you hit the seven device soft limit on either channel, you will correctly receive the “Brightness” warning in iCUE that can then be dismissed or you can adjust your LINK chain appropriately.
If you do not want to have your brightness reduced, simply abide by the previous seven device limit when building your PC. This merely adds the flexibility to choose a slightly easier build path at the expense of full brightness RGB.
If you have multiple System Hubs in one PC, they will control their dimming independently.