Yes they do have the altitude and distance limits and all of the ones I set up are set at 400' up and 400' out and the owners are told not to fly above 400' and not to take it out beyond line of sight, etc...etc...
Now once they get home they can change those limits if they want to. Some folks will do what they want to do.

The no-fly-zones are being updated and the copters will not even initialize if inside a zone and there is no way to force it to fly.