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To begin with, that's really not going to hurt anything. Yes, it's not W3C valid, but it's more a technicality than a practical issue. You can chain the limit output modifier with the htmlentities modifier if you must have it an HTML entity.
[[element:limit=`200`:htmlentities]]
Actually, it does hurt and a lot. This snippet generates content for RSS feed. As feed is not W3C compliant, search vendors refuse to work with it until it is W3C compliant.
Htmlentities come from TinyMCE. It is set to encoding mode "raw".