I am sorry, but can anyone name one benefit if the cap were to be increased? I can think of 10 disadvantages. But not one benefit. If anything, I would lower the cap.

With such a small number of clubs being currently able to afford the full cap, any major change is utterly pointless.
Having said that, there does need to be a way of slowing the player drain to Aus. (however, if we could keep developing enough quality players this could actually help the game over here !).
That said, it is important to be able attract the top talent within the sport to play in SL, so we do need a solution.
Perhaps the arguments against the "marquee player" are because this would make that person a "target", not so much for visiting teams, but maybe, in terms of keeping team harmony.

WHO, is this cap space going to be paid to?

Giving the current players more money does nothing to raise standards.

Any cap increase, or indeed paying up to the current cap, should be coupled with strict limits on how many players can have on their roster.

No cap, just controls on not spending what you haven't got, i.e. limits on debt. Equity investment fine, spend it how you like.

...BUT...no more than 13 players on more than 50k (maybe a bit more, not sure).

This makes it interesting. You can't just hoover up all the talent, you can't even hoover up more than one world class player for each position without leaving yourself short of a star elsewhere. Koukash can thus pay 13 'Harlem Globetrotters' whatever he likes without inflating the price too much for others. He might have the best scrum half in the world, but the second best one can only get what the next richest club will pay because Koukash can't carry two 'stars' for that position without losing another star berth. This goes on down the chain of wealth. Even the poorest club will, at worst, have access to 12th best scrum half in the country.

Moreover you'd better have a damn good development squad, because there is no way on earth 13 star players will get you through the season. On any given day you need 17 of course, and you'd be lucky to have more than 9 stars fit on the same day. Big rewards for being good at developing up and coming talent.

Your development squad is almost guaranteed to be UK ( or France ) bred too, because although the money is OK, it's not enough to attract second rate Aussies.

There, sorted

^ Well that was easy. ^

No but what it does do is spread the talent more evenly, you will see a lot more player movement between top and bottom teams and more movement in the best players. This has the effect of making weak clubs stronger and bringing the regular trophy winners down a couple of notches. We have seen it in the NRL with teams going from bottom to top within a year or two and silverware being shared out amongst clubs.