Thank you everyone for your input here.
The content of the KML file will indeed be dynamic, based on user
options - wouldn't be using it otherwise!
In addition, as the number of markers that can be displayed is limited
(or so I understand), this is also a necessity.

Just one further clarification I need here.

During development, I work on my local system.
If I understand you correctly Nathan, when creating a KML Layer, the
passed in URL is forwarded to the Google server for processing.
This means that I cannot work with KML Layers during local development
(usage of localhost) ?
Am I correct ?

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