What I imagine will happen (concerning no level limits) is that if they limit PVP to a level limit as you suggest - There will no no PVP. It will not take too long into the games life cycle and our levels will be extremely varied with some in the 200+ range, others in the 40-60 range and everybody afk macroing constantly. I see problems with adding PVE content such as dungeons since our levels will be all across the board and through every spectrum. Do you add a level 200 dungeon (when some players are far past 200) or a level 100 dungeon ?(where the average base line of population is sitting)
Hard choices come down with which camp to appease and nobody will be happy. The guy who spent $$$ to bypass leveling and is now level 200 is going to be mad if there is nobody to grief and kill (due to PVP limits) or he is mad that the Dungeons are now too easy. The average level of the playerbase will want dungeons they can do as well, so focusing on content to keep the level 200+ crowd happy is going to alienate the lower level folks.
In other words, developing PVE for everyone to enjoy become impossible and risks pissing people off.
A Hard Level Cap allows for the developer to add new content which will be at the appropriate challenge level for the greatest portion of the population (those sitting at level cap). An example would be that if the level cap was 60 a new dungeon area could be added for level 60-80 and the level cap raised each time a new area was added.,.
But the main issue here IMHO is the selling of XP WITHOUT a level cap. This is an Old School type game and the players who will be attracted to this game are Old School. There is no defense to the "Game is a Pay to Win" argument at this point, as it is a pay to win game. The consumers drawn to a game like this are inherently anti Cash shop to begin with , older and not willing to play a full lot game where the other guy can buy infinite levels. At least with a hard Cap it can be explained that "Yes, people can buy levels but its not too hard to level to cap and be competitive".
I came in here wondering if this was a Pay to win game and was told nothing gamebreaking would be in the cash shop- But this is the most gamebreaking thing I have ever seen. Even in PWI Asian P2W games they have a cap and you cant even buy XP (just XP potions to level FASTER)
I personally feel vested in this game. Not monetarily as the $10.00 I have spent on an account is a bargain IMO as I have played many, many hours. I feel vested since I actually trying to test this game (as its a Beta- Not a "trial") and promote this game and wish to see this really take off. I try to stay online far longer than I normally would to answer players questions and give some life to chat. Once a core community is established, the skys the limit... But I cannot promote nor defend the pay to win argument and that is going to be a huge turn off to a great majority of otherwise loyal players. This will hinder building the initial community and IMHO really hurt this game.
If revenue is an issue (as I know you need to make money for your hard work and expenses) I have some suggestions which I would be glad to share.
For the moment I am going to just work on my crafters and see how this plays out.