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I believe this situation applies to both native tokens and NFTs. I'm aware that at a single UTXO we can have multiple tokens. For example:

20000 lovelace + 10000 policyid1.tokenname1 + 1000 policyid2.tokenname2

I am aware that there is a transaction size limit but will anything up to that limit be valid?

I'm wondering if it's better to purposely just split it up into multiple tx-outs and create multiple UTXOs so when the UTXOs are spent those transactions will be much smaller. In this case something like:

    1000000 lovelace + 10000 policyid2.tokenname2
    1000000 lovelace + 10000 policyid1.tokenname1

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Both methods are perfectly fine to implement, but your answer to the limit is correct. Any number of tokens up to the TX size limit will work. For NFTs you'll want to factor in the size of the metadata as well - that increases the overall TX size.

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