If you'll set 'warn_level' to 6, you will get the error. But it's ok, when you'll publish your project, such errors won't appear. You could code your own way to use animated sprites too (like in some other engines where they use sprite sheets, so they cycle vertically too).
Warning W1108: Oversized texture
This texture size is not supported on many target systems. This warning is issued with textures bigger than 4096x4096 pixels if the warn_level variable is set to 3 or above. Unless you need a big texture size for sky cubes or sprite animations, avoid textures above 1024x1024.
Best regards!