Why do we have a maximum of 500 allies?

you want players to spend gems but they pick and choose which quests to do and nobody does the normal quest chain all to avoid leveling. There is no benefit to leveling it in fact penalizes players during wars.

If you remove the ally cap and level 200 players can take 3000 units, weapons and armor to war players will race to level 200 and even spend to get there just so that they are better prepared for battle.