Limited Access is no permission per-se - it cannot/should NOT be used by any user, administrator directly! It is SharePoint's doing and it does not give necessarly permisisons to user, beyond what already has, but rather complements existing given permissions with minimum needed so that targeted user could access necessary site section (document, page, list item, List/Library, etc.) to which its been given access.
So you cannot say that "Limited accesss has too many permissions" because that doesn't exist. However, you need to look (via Check permissions, at List item level, or list level or site level - linked to the context you are checking) at whether that user has not been given manually too many permissions.
Remove the user from the site collection altoghether and add him/her again, if you suspect its out of control.
Also, i recomand you rather use Groups to grant access, avoid giving them direct permissions by breaking inheritance - it soon becomes the nightmare of every site admin.