Actually, in this particular case, there is a work around. We have the same problem drawing large radii. Open a sketch and draw a line that joins the two end points. Calculate the length of the middle ordinate and draw a line in from the center of your first line, the length being the middle ordinate. Close and save this sketch. Make a new sketch on the same plane and pick "insert", "curve", "curve through reference points" and pick your three points on the curve from the previous sketch. This works for curves with a radius greater than the 1 km limit.
It's not easy, but you have to do what you have to do.
I checked at one time, and apparently this limit is inherent with the parasolid kernel, not just solidworks.
Tom Stanley