Each booru does things its own way, but I can’t think of one with a small tag pool. Most are actually giant. IIRC Danbooru actually allows anyone to create a new tag, or edit the tags of other users’ posts. As of 6 years ago it had approximately 317,760 tags according to here.
There’s also volunteers who moderate tag misuse, but that’s much harder for video games than it is for single-frame images.
Now I’m not saying Itch should erase the tag limit or 100% become a booru, but if it already allows people to make up their own tags, then a higher limit and tag exclusion is basically expected.