IMO yes there is such a thing full up travel and it is what you described. Full up travel is just before your shock is fully compressed. Limiting up travel before the shock is fully compressed is limiting up travel, like avoiding body damage or cutting up the tires.

I think the same is for droop. Does using a shock as your limiter damage the shock? My tj rear sway bar stops my droop about 3/4 inch before full shock extension.

Not sure about my jks setup yet but I'm working on it.