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Limiting the time for undoing actions limits also the undo feature to 'oops...' functionality only/mainly. It will not let user undo some actions they performed in past after getting some more information about whatever is related to this action, or the element the action was performed on. So having an endless undo feature is a value from user experience ...

Case 1: You do not have a timer and the notification stays till it is manually dismissed. There is nothing wrong what-so-ever with this approach. You display a message for undoing and it stays till the user has read and consciously dismissed it. Great persistent feedback and lesser chance of missing it even if you are distracted somewhere for a while. The ...