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They dont. You see, they don't have to model and animate every pokemon each generation, they just reuse the models and animations, and would only re-make them if they undergo a big change, which doesn't come often enough to warrant a waste of efforts. As for balancing, it's not a big deal, touching on both balancing and the number of Pokemon there would be, take Magic the Gathering, there are, from a brief google search, about 12,000 cards in the whole of Magic the Gathering, I imagine a good handful of these aren't strictly balanced, and as a whole the balance of the game is probably not perfect, but they manage to balance a game like that, and people still get into Magic, as well as other trading card games, even knowing how huge of a barrier it is, Hearthstone is the simplest card game to get into and it has 1000+ cards. The beauty of Pokemon is even if there are thousands of Pokemon, they have set up a way that unless you are really stubborn, you don't have to stress over catching them all yourself, or learning about them yourself. There are millions of other players, and ways to contact them and trade with them to make it easier, and so many places you can learn about Pokemon at the click of a button.
If I had to seriously answer it, and guess a "reboot" limit, I'd say at least when theres multiple thousand Pokemon, and even then they would only reboot it if sales were waning, and even then, it's unlikely.
