As one person pointed out at one point, if you cap characters at a particular level per Act, then it totally discourages exploring the entire map. If I will cap at Level 4 in Act 1, that makes me feel like, "Why am I even trying to complete the surface map? In fact, I should have just run straight through the main mission skipping everything else because, frankly, I can reach the cap BEFORE I even get to the Underdark - let alone Moonrise Towers."

Now, you might say, "What if they lift the cap to Level 8 or something?"

Same potential. By the time I reach the Underdark, I should actually be at Level 5 for sure and potentially even Level 6. So, there's not much room to go from there all the way to Moonrise Towers.

So I'm against level capping just because it feels like players are getting cheated out of rewards. One of the main things players love in D&D is to be rewarded with XP, level ups, items, gold, fame, etc. If you take away awards, you make players feel slighted and robbed.

Shoot! I already feel cheated in EA, and I know it's EA so it makes sense to cap at Level 5. But seriously, my motivation to even continue the game after I am capped at Level 5 starts to drop for me. I'm like, "Well heck. What am I building up towards now? I have a ton of items and weapons and equipment - the best in the game so far. So I don't really need any additional items. I've got WAY more than enough. And now I have nowhere to go with levels and increasing my characters' abilities." I can't even imagine if they did this kind of thing for final release.

Yeah. Capping characters is BAD gameplay mechanics if you ask me - almost as bad as limiting you to only the same 4 party members going forward after a certain point. It's worse than capping your party at 4 instead of allowing up to 6 party members. That's just how bad it is.