Technically, the erasing of spaces and items within can completely remove every resource on the planet, since a new weapon or furniture has to be made and etc.
That's what horses were for. With the right mods, I'd just leave every single useless twat of a companion behind and roam the countryside with my super useful horse. Half transportation, half fort knox. That and one or two different storage spells, keep things sorted properly. I never went full cheats either, so I still had to visit shops to unload items a lot.
Honestly, that might be a balancing feature since the fairies also seem to make water and other elements out of thin air, and they don't disappear, so if it wasn't regularly removed, it may end up piling up.