Ion engines are still limited by power density - higher ISPs take quadratically more power input at reasonable ISPs. (As in, at non-relativistic velocities) Thermal rockets have a lower upper bound, but come with higher thrusts. Everything is tradeoffs, in the end.

And why on earth would the kind of newtonial engine mean that you wouldn't be limited by the rocket equation? The only escape that is to have reaction mass outside of your reference frame somehow. (picking up fuel from interstellar space, having thrust beamed to you via laser, some form of reactionless drive...)