Question regarding legal contracts for marketplace apps

Hi Folks,

When publishing apps to the marketplace, you can choose to use the standard Microsoft license agreement or upload your own. We use the standard agreement with most of our published apps. You can review the standard Microsoft agreement here: 

https://query.prod.cms.rt.microsoft.com/cms/api/am/binary/RWXcE3.

Recently, while negotiating an agreement with a new client, we used the standard Microsoft contract as a baseline, and the question of limiting liability came up.  As per section 8, the publisher's liability can reach $500,000, and in some cases even $2,000,000! It seemed a bit excessive even to the client...

Does anyone have experience with this during contract negotiations? 

Microsoft folks - what do you think? Is this a reasonable number? Can (or should) it be changed?