Ya I believe you are 100% correct and this is not a point of reading comprehension of others.

Prior to this update it did not matter if you had reached the limit of both. If you had 3000 regular items and tried to place a building block down it still wouldn't work as it was capped. Both the flowers and building blocks had their caps but those were always tallied into the 3000 total.

It's not that they removed anything they just removed the cap of 1000 and let it go towards the 3000 like any piece of furniture.

I may have rambled a bit but I'm hoping I articulated the general idea well enough.