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I'm honestly not sure how much of it Google indexes, however, too much of anything is not good IMO. The old rule of thumb was not more than 150 characters to include spaces. However, the use of alt tags is meant to help "define" in descriptive terms what an item is, not to supplement or be an entire thesis of content. Trying to go overboard could backfire in my opinion. For that matter, someone more schooled than I probably has a good reference, but I recall Google and others penalizing those abusing this attribute, especially if it's deemed they're trying to KW stuff it.
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