DVI switch

What aspects of a DVI switch (KVM for example) would affect its ability to
handle higher video modes such as 1920 x 1200 (when it can handle 1600 x 1200)?
I'm curious why there are so many DVI switches that have a 1600 x 1200 limit
and can't do 1920 x 1200.

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The main factor effecting the maximum resolution supported in video switching is the quality of the (electronic) switches used and what bandwidth they can pass without causing problems to the signal being passed.

Wether a particular switch will reliably switch higher resolution signals (higher bandwidth) is a bit of trial and error or feedback from users that are already doing it. The resolutions that are specd tend to be the predominant target level resolution (for the switches market and price point) at the time the units are designed, they then tend to last on the market for several years without much change. With PS/2 and USB keyboards and mice now beomcing more common on the host (PC/server) end there are newer KVM's emerging that suport the more recent and becoming more common higher resolutions.