100% agree.I think part of the issue I have with the "soft caps" we have now with guild levels is that it's hard to get excited about renown in any form once you hit that cap. For instance, the event going on right now seems pointless to me personally. Extra renown seems great at first glance, but the natural soft cap just takes any bonuses away eventually anyway. It's why I don't use guild renown pots. Unless you chug them constantly, they're good for a quick burst and nothing more. Assuming no other outside factors, the natural guild level balance will remove any short term advancement over time.
Another related problem is that it's human nature to want to advance to that next shiny goal. When you get to the guild renown balance point, your options for advancement become very negative in nature. Removing casual players or streamlining the guild roster in other ways become factors in advancing the guild level. I'm not saying every guild starts doing this when they reach the cap, but I do think that Turbine should be enforcing positive advancement techniques or at least not silently encouraging negative decisions in order to advance.