I reckon Terry's willingness to just giveaway money is more of a limitation than the cap for us.
It's not so much Terry's pockets or the inflationary increase in the Cap, but if those coming off contract think they deserve a big raise to re-sign, it means that it puts pressure on the ability to fit everyone under the cap.
Rather than building a team over the long term, you are forced to move on players if you need room under the cap.
Usually there is natural turnover of players, but it doesnt really encourage long term team building with the same group of players