I have an ArcGIS Online hosted feature service with about 17,000 features, and it will not open in ArcGIS Desktop 10.2.2 with an Advanced License. I have increased the Maximum features in the REST service end point and I still get the same results. Is there some other method to configure this so that it will open, or is this more of an issue with a limitation of ArcGIS online? Its probably helpful to note that I can get this same service to load into web maps, and Collector for ArcGIS just fine.
When you publish the hosted feature service, you specify the maximum number of records that can be returned from the service. This is done under the Parameters - Max Record Count property (in the Service Editor wizard), just as you did.
I have noticed that changing this doesn't always getting through. I had to re-publish the service specifying before publishing the larger number of features that can be retrieved to get it working.
I am able to add a hosted service with 20K + features into ArcMap from the Catalog window (My Hosted Services) and I can see that all of the features are drawn and all the rows are available in the attribute table.