For: The SMJHL has it right with the 350 TPE cap.

The purpose of the SMJHL is to be a smaller pool where you can test your build and learn to appreciate the community. Fostering first generation players is one of the most important tasks of the site. If the cap was any higher, the rookies would get crushed more than they currently do, first gens would get turned off by their empty stat lines, and would eventually go inactive and the site would cease to grow. The current cap seems to be at the right spot to reward hard-working rookies. Playing on a roster with only 4 capped players has stunted my opinion, though, and perhaps the way around this potential imbalance would be to add another expansion team to increase parity for capped players who are stuck on the 3rd line of stacked teams.