The only difference the loot cap has made is forcing you to go exchange for cash every 200 items. This promotes movement/travel on the map. It might also prevent some one from writing some kind of automation to target and loot dive without player inputs (beyond 200 items).
Carrying more loot was a nice way of having 'savings' for when an event came up - sell your stash and you could suddenly afford *whatever item*.
Honestly though, the loot & bug cap have done little to the systems. The real nasty part has been that the rarity of valuable items (and the value of all bugs, in general) has been drastically reduced.
I got five narwhal horns in a row like 3 years back. Now it's rare to see the 'rare' type items at all.
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The longer it takes to earn money the longer you have to be playing or you can just buy gralat packs. Wait a minute