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So I've read the PDF and I'm starting my way through the warscrolls.

The big rule PDF just says "In order to play, you must  first muster your army from the miniatures in your collection. Armies can be as big as you like, and you can use as many models from your collection as you wish." That's all it says.

So it seems like I could take multiple different races units if I want. So my army could be a Giant, a Bestigore, a Chaos Lord on Manticore, a Screaming Skull Catapult, some Bretonnian Knights, and a bunch of Saurus. Right?

And just to be polite, is there any limit I should use? Like maybe limiting myself to taking warscrolls from only 8 or 9 different factions, to not be unfair to my opponent?

I ran an Empire army with 3 River Trolls in it today. The idea was they had captured the River Trolls and now set them loose on the enemy.

Basically rule-of-cool. People like to play against believable armies, but there is much more to that than always running a single faction.