The root issue with "capped" events is they make those players near the cap a huge favorite. I'd bet strong that the players with a 595-599 rating have won significantly more tournament cash than anyone in the country outside of the legit pros. Because every weekend in every city you can spit and land on a 599 capped event.
Then the issue becomes "where do you make the cap at". No matter where you make it, it makes those players close to it the big favorite.
"handicapped" events don't have this issue. They spot either games or balls to make it so anyone has a chance. AND, everyone is usually allowed to play in these events, event pros.
"capped" = excludes a large number of player entirely. Of the players that do enter, favors strongly those close to the cap.
"handicapped" = lets everyone play. Everyone has a chance.
"Open" = Lets everyone play, everyone plays even, determines who is the best.