I wonder where is the physiological limit of terrestrial animal size.
That is a good question. One of the major reasons why dinosaurs could get so massive (in particular the sauropods) is because they probably had a respiratory system similar to the avian system, which is much more efficient than the mammalian equivalent. In fact, if the sauropods had had the mammalian respiratory system then they would have needed lungs around the size of their bodies in order to maintain themselves.
As for the maximum size based upon physical variables, that is actually a very good question. I have been unable to find a peer-reviewed paper on that particular subject, but I did find
this paper which goes into some of the considerations involved in attempting to answer that question. It is not peer-reviewed and it is a bit dated (1985) but it provides some useful information to consider.