Probably your latter reason. I'm looking through Daniels'
Designing Great Beers and he gives a figure for the hop utilization curve (Figure 9.4 in his book). He doesn't say from where the information came, perhaps M. Garetz,
Using Hops: The Complete Guide to Hops for the Craft Brewer, and I don't know how faithfully the curve was reproduced in Daniels' work.
The slope of the curve begins to flatten off as you get to higher boil times, but it doesn't seem to be getting entirely flat. I'm an engineer and a nerd

, so I tried a regression fit of the curve and got a pretty good match. The equation has no asymptotes if you extrapolate past the data (120 minutes). The graph also shows 100% utilization after 260 minutes, but again, the data set doesn't go that high so the number probably isn't reliable.
So in theory, it seems the utilization level continues to go up with increased boil times. But in practice, who's going to sit there that long!?!
BTW, this graph shows utlizations up into the 40% range at 90-120 minutes.