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I've only heard the term used in warcraft to mean something like "as soon as the new expansion comes out, everything you did is basically useless and you're put at the same level as someone who didn't do any endgame content"
Except, the only time that's an issue is the start of a new expansion. If you reach pinnacle cap in a season, you will be a power cap at the start of the next season, long way up from the floor. It's this way, or new players can look forward to a long slow grind to catch up to the top light levels. Just think how long it would take for a new player to start from 0 or 100 to get to even 1350, not someone like me who plays too much, but someone that has a job they need to do, children to raise etc.
Also, going to a static cap, removes one more thing to strive for. OK, at power cap, have "god rolls", bored. It's OK for a static single player game to do that, but a live service game might not be live for very long that way.
problem is they are not exactly adding features in the game that improve it. They are just adding these stupid mechanics that eventually just go away.
https://www.youtube.com/watch?v=ep2GB-rk7kI
this explains it well.
Power caps have been going up as long as I can remember. They have in fact improved this game, Witch Queen is better than the others. Anyone who played year one or two can see the difference in the game, it is a lot better now. Getting those light levels is easy, so I don't understand the gripe. But I guess what ever they do, some will gripe.
The destination will always be a moving target for any game of this type, because the destination isn't the point.