The proof of $HALT$'s undecidability usually goes like this: we assume the existence of a halting decider and incorporate it into a machine $D$ that takes a TM as input, runs it on its own encoding and does the "opposite" action. We then notice $D(D)$ has a contradicting behavior and conclude a halting decider cannot exist.
This is a rigorous, formal proof; there's no doubt about what it states: "given a Turing machine $M$ and a word $w$, we can't decide whether $M(w)$ halts".
But consider the following statement: "given a Turing machine $M$ with less than $2^{2^{100}}$ and a word $w$ with less than $2^{2^{100}}$ symbols, we can decide whether $M(w)$ halts".
This statement doesn't contradict the one above it, but it effectively makes $HALT$'s undecidability seem just a quirky theoretical fact, without any practical relevance.
My question is: how "obvious" is it that the second statement is false? It seems to me like neither Turing's 1936 paper, nor usual textbooks on computability address it explicitly. Am I missing something?