"if there's say 100db being pushed out of the speakers, it would only be around 60db or 70db at the other end of the hall?" I know what you mean, and the answer is yes, although the level wouldn't drop to as low as 70dB, but it would drop considerably.
At risk of confusing things (and myself), when you refer to the number of decibels a speaker pushes out, you should always state the distance at which it was measured.
A good illustration is 'miles per hour'. You wouldn't indicate your speed my stating that you were doing '80 miles' down the Motorway - that would be an incomplete and inaccurate statement. Likewise with decibels. You must always quote the distance it was measured at.
Now, on to your hall scenario:
If your speakers were pushing out 100 dB at 1 metre, that would easily amount to far less than 90 dB at the limiter sensor. But then, 100 dB isn't all that loud - at a guess it would be about the same as loud speach half a metre from your ear.
However, when you get several people shouting and cheering, the level can be surprisingly high and if this was ocurring near the sensor, then it would easily trip. You know this yourself I expect: You are doing a disco and it might be difficult to hear normal speach near you, but if the women start to squeal on the dance floor, you can most certainly hear it above the music!
Remember also that walls and ceilings reflect sound and can reduce the normal volume reduction with distance, so this adds to the complication.
To my mind, I think 90dB is a bit unreasonable for a function room, but that's their decision, not mine!
Are you now more confused than ever??!