I agree that getting rid of the INDIVIDUAL max salary rule but keeping the rest how it is would go a long long way toward competitive balance.
The more you restrict an individual salary, the MORE likely a player is to pick one of the major markets or an already good team.
-This already happens with the MLE...when a player is an MLE type player, all the teams offer the exact same dollars, so the player picks LA or NY or a contender (Dall, Bos, Miami, Orlando, San Antonio, etc.). So if a player can get the max anywhere, they will pick the big, fun market, their original home area, or with their buds.
-The more you restrict individual max contracts, the MORE likely it is that multiple stars can team up. 2 reasons:
1. If the max is more restricted, just mathematically you can fit more max guys on a team. If one player was getting 50% of the cap, however, it would be much harder to get 2-3 of those guys.
2. The more you restrict the individual max, the less money a player is leaving on the table to take a paycut to make salaries fit.
Look at Miami: they all took a "paycut" of like 1 million per year to play together. But that's only due to the individual max. If there were no individual max, maybe then Lebron is thinking about a starting salary of 15 million in Miami vs 30 million in Brooklyn. That is a huge difference. Or, Miami would have asked Wade and Bosh to take big paycuts to start at 10 million per year to fit in Lebron at 25 million to try to get close to another team's overbid.