Best practices for limiting the number of versions for an Item

There are some items in our CMS that have dozens of versions. We want to limit the number of versions that we keep in the CMS, and archive the rest.

Should I be concerned about the number of versions I am keeping in the CMS? Our content editors requested it to improve their quality of life, but other than that should I really be concerned?

Supposing archiving older version is a good idea, is the a standard approach to doing this?

I wrote my own version archiver which traverses the content tree and archives all be the latest 10 versions of items. But I also see there are some modules on the market place that might do something similar.

I would be glad to hear opinions about this matter. Is archiving versions a good thing? Is there a standard strategy or module I should try before I write my own? Thanks.