What are the implications of using an inode_ratio of 16384 in terms of storage use on ext4?

I'm assuming that this means that if the average file stored (including directories etc) is less than 16384 bytes, it may be possible to run out of inodes before using the full storage capacity of the filesystem. However, should the files being stored consume over 16384 bytes, on average, a physical space storage limit should be reached before one would run out of inodes.