I guess that's the overall point, there just isn't enough content. If you are a casual player like me, what is there to log in for every week? I don't raid, so the only thing I have to work towards is gearing up my characters as much as possible. I understand why the cap is there, but it's a lose lose. Keep the cap, it's the way it is now. Take away the cap, everyone gets their gear right away and because there's nothing to do unless you raid, you either level up another job or stop playing.
You are right about the overall progression comment, but if everyone thought getting your Eso's to gear up didn't matter in the long run, what would all the casual players have to work towards? "Oh this gear doesn't even matter because it isn't that big of an upgrade. Plus I don't want to do the content that this gear requires, better go do some of the other end game content. Oh wait."