I believe G. Bastard's question is in general to casinos that allow re-splitting of pairs, and has nothing to do with other conditions.
Many casinos allow re-splitting of pairs. Some include aces, some don't. Some casinos do have more options available to the player for their games that have more decks, so it is not unusual to find a casino that will not allow re-splitting of pairs on single or maybe double deck, but do allow re-splitting pairs on their shoe games.
Games allowing re-splitting of pairs usually have a specified limit to the number of times the player may resplit. Most commonly, this limit is splitting three times to create four hands. I would venture to guess that the reason a limit is set at all, is to keep a player from re-splitting tens too many times in an ultra-high count. I guess that would be a final security measure in case the pit and eye were not doing their job properly.
Other from that, the house would be giving up a negligible amount of edge by allowing infinite re-splitting once splitting three times is allowed, since the frequency of opportunity to re-split to more and more hands would be rapidly diminishing.
G. Bastard was asking if, once the allowed number of re-splits had been exhausted, could the player re-split again if any of the split hands busted bringing the number of split hands on the table back down below the maximum allowed number of hands.
His question appears to me to be only about the limit of re-splits, and would not be affected by number of decks or penetration.