Hi Kris,
Yes, no traffic policies are needed, since the default 0.0.0.0 would listen to all traffic over the tunnel and would optimize the TCP traffic that flows both ways over the tunnel.
On the 100 tunnel rules, yes, this limit can easily be increased.
One way is to edit the tunnel_policies rules directly:
1000=0.0.0.0/0,-,Default
111=11.0.0.0/8,1,Lab-3-24,10.10.3.24,
112=10.0.0.0/8,1,Lab-3-24,10.10.3.24,
That said, the result of this would be the same as setting a default rule to use Azure (Tunnel 0.0.0.0/0) and using the batch script to add the routes on the host or using Policy based routing to redirect only the interesting routes to the tunnel.