"Unlimited" does not mean "all" in this context, it means something more like "inexhaustible" or "infinite." And some infinities can be larger than others: the set of all real numbers is larger than the set of all integers, even though both are infinite in size.
Of course language is limited in terms of its ability to represent reality, Chomsky doesn't deny that. All ways of representing reality are limited, that's pretty much axiomatic in whatever definition of "representation" you mean.
Of course language is limited in terms of its ability to represent reality, Chomsky doesn't deny that. All ways of representing reality are limited, that's pretty much axiomatic in whatever definition of "representation" you mean.