What happens when it runs out? It crashes? It would make sense for it to recycle them.
If I'm not mistaken, an objects ID can go up to 2,147,483,647. (Highest number you can get with int32. If Blockland was a 64bit program it could even go up to 9,223,372,036,854,775,807! Now think about that.)
Even then it'd roll over to the negatives, not sure if a objectID can be negative though.