Alchemy's limit of 5 pertains to essences, oils and things like Alchemist's Fire, but certainly not all final products. Potions that rely on essences (cure, heal, bull's strength, etc) are limited to 3 and things like silver/titanium dips and visual effects are limited to 1.
I guess the question here is whether holy water constitutes a final product or if it's merely an intermediate for other products.
Nevertheless, we'll review.