The SMJHL has it right with the 350 TPE cap.

FOR

The main purpose of the SMJHL is not to satisfy recreates or to cater to people who stay down three seasons to have the best shot at Rookie of the Year in the SHL seasons down the road. The SMJHL is for first-gens and actual rookies to show them what this league has to offer and to get them hooked, in order to do that the 350 TPE cap absolutely makes sense and should remain untouched. Progression and the value of each individual TPE is most significant at the start of a players career, so a jump from 350 to say 450 TPE would actually be quite massive, both in the actual sim and as a psychological factor. It can already be quite hard for rookies to gain quality ice-time, the last thing we want is bury them one the 3rd or 4th line even more, forcing them to go up against players with twice their TPE and creating an incentive for GMs to play send-downs more because they have become more valuable compared to rookies.