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As has been stated before your 2nd assumption is far off base. Catholic dogma does not insist that for a soul to enter heaven one must be baptised. Baptism (along with the other sacraments) is an outward sign of an inward faith. An embryo has committed no sin and one can only assume that the soul belonging to this embryo will not be placed in purgatory for eternity.
That being said your concept of "overcrowding" is absurd. You do not physically enter purgatory or heaven. They are not physical spaces; rather they are metaphysical - beyond terms of volume and space. A being's soul is not representative of that being's outward appearance. Again the soul must transend physical characteristics in order to be able to enter the space which we have defined as "purgatory" and "heaven". Being above physical dimensions an infinite number of souls can fit in the infinite "space" of the afterlife.
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