Bone growth isn't the issue with limb lengthening, apart from complications such as non-union, new bone growth isn't difficult as distraction is expected and reliable. Theoretically, bone growth is unlimited but as you said, it's soft tissue that must be stretched slowly and not beyond it's elasticity to rapidly otherwise major damage and plastic deformation can occur. What is more interesting is using the same stem cells to actually repair the soft tissue damaged during lengthening.
yes, that was my thinking as well. repairing the stretched muscles with MUSCLE GRAFTS from stem cells would theoretically be achievable, but what worries me is the nerve that goes through the leg to the foot. this fragile fibre would inadvertently present problems if one decides to stretch it rapidly
in my opinion, a hypothetical way to do such surgery, lets say on tibiae, is to cut the skin all around the ankle, pull it back up the leg above the spot to be cut, cut the bone + muscle with a saw, insert bone graft piece, insert muscle grafts, stitch it all up, pull the skin back down to the ankle and stitch it up.
the nerve presents the problem in this scenario, however, it is known that accidentally fully amputated limbs can be sawn back with close to the original sensation so the nerve can be cut after all and stitched back up