Point is that, due to curvature of the earth, any plane/missile keeping under some 100 m of altitude can't be detected by the sam battery until its some 40 km away from the said battery. So while the theoretical range of the system, limited by the missile i imagine, is 150 km, the actual range in the case where taiwanese know they have to keep low, is much lower. But hey, that's not so bad either. Flying low has its drawbacks. Bigger drag meaning lower top speed, bigger fuel consumption, a danger for inexperienced pilot, etc...
Didn't see vince's post until i posted this. but just to add, its not really a limitation of s300, but radar tech in general. Patriot batteries would fare no better in the same scenario. (PAC3 with active radar terminal guidance might have an edge, though)