I agree with every point you made, and obviously this is better than having no cap at all, but this is exactly what makes the argument a false dichotomy, which the government is doing more than you were. Any positives are only relative to the single invented alternative, not any of the better solutions.

The simple fact is that public services like public transport, the NHS, postal service etc should not need to be profitable. They should never be expected to support themselves financially and should be funded by taxation on those who can most afford, not increasing the cost for use by those that most require its services.

Public services will continue to crack and fail until we have a government that understands this.