not sure why this is a poll, it's easily proven and yes it's capped.
i will agree a lot of new players have no idea it exists though or why it existed.
in short there are some unspawn items with 200+ee for lower tiers which obviously blast those levels.
presumably for balance reasons as to not make the early levels completely free added the cap. although didn't cap some other things such as stats, so the +50 t1 staff and high stat charms you see will still work