This typical cloze illustrate that the convenience of creating multiple questions in a one step process is the most important reason to use cloze or other variant.
The size of the left question info image (i.e. question1 ...) is the limit height size of a given question. Normally it is 4 lines. It could be less.
We could think of a Moodle GIFT improve editor that could create and manage as many questions as needed. More questiontypes could be edited by using a more complex editor and even converting the output in moodle XML instead of GIFT.
This could give us incease flexibility and easyness.
P.S. This imply that there is no in-line restriction of Cloze question-type.