Why you should not set an extreme value as server time-out?

Time out value is there to limit the amount of processing time allocated for requests. If you assign a larger value as time out, it will stay more time in the queue. So, even though you can always get over from a time out issue by increasing the time out value, ideally what needs to be done is ensure that your application is well optimized so that it will execute within less duration than the specified time out value. It will enhance the server performance.