Hi,
In regards to your questions:
1) It is not possible to increase the amount of keywords per ad group
or per account. You should either try to remove unnecessary keywords
or create new AdWords accounts for large campaigns.
2) I'm not sure what this error message means exactly, but I don't
think your campaign was deactivated. Let me know if you see any
problems with ad serving.
Best,
- Eric Koleda, AdWords API Team