Here is the bubble burster.

Some day, all MMORPGs will be unplugged. These games will not last forever. None of your work in these games matter apart from the fun you have right now.

So, using the argument "all hard work goes to waste" for level cap increases is completely moot. Enjoy the new content while you still can. There's much more constructive things you could be doing with your life that will actually have an impact rather than sitting down playing a game for several hours a day. So, enjoy the game and fresh new content rather than bitching about "hard work wasted".

If you couldn't guess, I'm with the "increase cap" option.