Thats the height of the test which was dictated by the orbit of the target. That has nothing to do with the absolute limit. The system could go much higher.
DA
And somehow this same argument cannot apply to the Chinese test too?
Why don't you read more about the launchers themselves.
http://www.sinodefence.com/strategic/spacecraft/antisatellite.asp
"It was presumed that the kill vehicle in the 2007 ASAT test was carried onboard a KaiTuoZhe (KT) series all-solid-propellant space launch vehicle (SLV) developed by China Aerospace Science & Industry Corporation (CASIC). The four-stage KT-1, allegedly derived from the DF-21 intermediate-range ballistic missile (IRBM), has the capability to place a 50kg payload into 600km low earth orbit (LEO). The larger-size KT-2 has the capability to deliver 300kg payload into the geosynchronous or polar orbit. The heavier KT-2A has an increased payload of 400kg for polar orbit missions."
If they used a KT-1, which is the most likely vehicle which most people seem to agree, then the KKV vehicle itself may not be more than 30-35kg if it is to reach that 865km height. KT-2 is still in development hence why its likely the KT-1 is used, and besides, the Xiyang space facility has been noted launching KT-1s before. Check the PDF you like to quote, the Raytheon EKV is about 150lbs.
As a matter of fact, the KT-1 has been used to launch microsatellites before, though not as successfully but given time they would have fixed it.
http://www.sinodefence.com/strategic/launchvehicle/kt1.asp
"The first flight of the KT-1 from Taiyuan Satellite Launch Centre failed to place a 35.8kg microsatellite KT-1PS into 300 km polar orbit on 15 September 2002 due to a second stage malfunction.
On 16 September 2003, the KT-1 made a second attempt to place a 40kg PS-2 microsatellite into 300km X 300km polar orbit was partially successful. The official report said that its guidance system, fairing separation and satellite-launcher separation work well but also admitted that "not all objectives" were achieved."
The reason why the KT-1 is used and developed, because it is cheap and convenient. You're just literally reusing old IRBM stuff, not to mention easy to mass produce.
"KaiTuoZhe-1 (KT-1) is the solid-propellant, four-stage orbital launch vehicle developed by Space Solid Fuel Rocket Carrier Co. Ltd. The launch vehicle was said to be based on the first and second stage of the DF-21 intermediate-range ballistic missile (IRBM), with a solid third and fourth stage. The KT-1 is capable of placing up to 50kg payload into 600km low earth orbits (LEO)."
If they're going to use something larger like the KT-2, then you're talking of sending 300kg payload ( which can be 10 microsatellites) into geosynchronous orbits.