Nesting checks with 'pick with NBT' allows crashing the server or client

With the 'pick with NBT' feature introduced in 1.8, it's possible to create a chest item with a very large number of nested NBT compounds. This causes any client using the item (holding it, manipulating the stack, placing it, etc) to lag or crash.

Note that this exists on 1.8 as well, but I am unable to tag the issue with that version.

Steps to reproduce:
1. Switch to Creative mode
2. Place a chest, and fill it up with any item.
3. Perform a 'pick with NBT' on the chest (control + PICK)
4. Duplicate the stack (press PICK when hovering over the stack, when on the 'Survival Inventory' tab of the creative inventory).
5. Repeat steps 2-4, but each time filling a chest with the stack from the most recent step 4. This creates many deeply nested chests - e.g. east chest contains 58 chests, which each contain 58 chests, etc.

After about 4-5 iterations of step 5 (the exact number depends on the computer running the client or server), the resulting item will cause extreme lag on any client holding it, and may even crash the client.