Yes, there is a limit. I don't see the correlation.

If PR has gained max stats, and she has 10 crowns, or 20, or 50, she will give her opponent whatever bonus necessary to give that person a chance, correct? And if she is losing, she is not gaining crowns, but the OTHER person is. So when she has so many crowns that the other person wins, he gains a crown, she scales off of HIS crown, and the cycle continues to be a little more even.

Throw a new player into the mix, and he can contend with EITHER player because they've both won many crowns by this point. So now this 3rd player starts getting crowns, etc etc.

But if there was a cap, how many players do you think would reach competitive level, even assuming they get max bonus from the other person's crowns? This is especially true as/if larger players who can contend but aren't quite there yet quit (ie Exec, Bubba, etc). New contenders would have a loooong way to build up before they can contend unless the max cap you speak of is 20-25 crowns (in which case I don't see the complaint as we are nowhere near that just yet, and it can be revisited when it becomes relevant).