The time limit is dictated by the size of the file- in other words, the FAT system used to write data doesn't know how to handle more than 4GB at a time. Magic Lantern can be set to lower bitrate by changing the compression scheme, but the tradeoff is that you can negatively effect the quality of the picture by having it more compressed.
If your eventual target is a lossy internet file, that's probably fine, and I've heard people saying they can get over a half hour with adequate quality using ML's qscale setting.
If you want top quality and/or plan on projecting this on a big screen, that's not really an option.
The other thing you can do is tell Magic Lantern to automatically restart recording when the limit is reached. However, there is a 1-2 second gap between when the previous file ends and the next one starts (needs time to unload the buffer), so its not seemless.
Thank you for this information. Seems the restart recording time is the best option, even with the gap. Now the question is, when does this option become available for the 60D?