Ah, now I understand, I thought you were talking radio range, not wire length. In that case yes 20ft is probably about right; first and foremost the AM-1 is an indoor item designed for H0 and similar sized layouts. It's not meant for driving things over long distances, I don't think I've known anyone to put all their point controllers in one spot, but put them in close proximity to the points being thrown.
Now that said, expanding a bit the AM-1 is not designed for driving significant loads over long distances; if the AM-1 was just being used as a "data line" so to speak to something else that throws the points and takes all the grunt in doing so (for example a high power relay) then there really shouldn't be any reason you could not drive that something else from a significant distance (wire length).
That's just a very board example mind you. I looked up the LGB 12010 and that's just about the worst manufacturers documentation I have ever come across, it doesn't even mention what type of point machine it is so I don't know if it's coil or motor driven.
I've fixed the link. Again, mcbunton has done this this already so hopefully he'll be able to pipe in to give you better pointers than I can.
- Tim