Good question. I think CC limits should be calculated in the same way that they calculate how large of a mortgage you can afford. You should have to document that you have the means to handle the limit being granted. The application should involve a whole lot more than just stating your income because that says nothing about your actual ability to pay your bills. You should have to show your expenses and your other debts to show your actual disposable income.
Of course, we all know that it is best for your FICO score to not charge more than 30% of your limit, so if you can comfortable afford $1,000, you want a limit of at least $3,000 or so.
The other big problem is that the CC company doesn't want you to pay your bill in full every month. They make a fortune, in fact the vast majority of their income, on fees. They want you to carry a balance, as big and as long as possible. There is no incentive for them to give you an affordable limit.
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Steve
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