That's absolutely true, but there's something to keep in mind here: The unique nature of competitive sports is such that "normal" economic principles cannot be applied to a professional sports league.
In the auto industry, the predatory nature of competition works just fine. If Ford and General Motors can't keep up with Toyota and Honda, then the first two will lose market share to the latter two. Under a worst-case scenario, the first two may even go out of business. Such is the nature of capitalism.
The problem in sports is that the competition is the product, which means all of the teams in a league must walk a very fine line -- they have to adhere to souond business practices and function in a normal competitive manner from a financial perspective, but at the same time they must ensure that their competitors remain, well, competitive!
I'm not a huge fan of a salary cap in general terms, but there is no question that a league comprised of teams with disproportionate levels of financial strength does not have a strong future.
I think you're right. That's why I am not opposed to spending limits, just as long as they are not absolute.
The players have come up with some great ideas that I would like to see put in place.