When you blit an image to a surface, it basicly draws it on the surface. The location of the blitting or the object blitted is not saved and cannot be changed. It's like if you were painting the images onto a canvas. The new ones would go over the old ones and there would be no way to get rid of one image if it were colliding with another image.
The most common approach to solving this is to just completly clear the screen using surface.fill()
, and redraw the images each frame.
To answer your question about if there woudl be problems when there are lots of images, no. The window will only be saved as each individual pixel being a certain color, much like a regular picture you would take a camera, so no matter how many objects you blit, the game will always take the same amount of time.