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AC has a cap in no limit? That's ridiculous.

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Interesting. I thought everybody had a cap on no-limit raises when not heads-up. I've used that to my advantage a couple times when people were being silly with min-raises with a sequence like:

UTG: "Raise to $10."
UTG+1: "Make it $15"
Me: "Is there a 3-raise cap?"
Dealer: "yes"
Me: "Make it $20".
UTG: "I'M ALL IN!!!"
Dealer: "I'm sorry sir, the betting is capped"
UTG: "WTF!!!!"

I couldn't have called with my middle pair since it was clear one of these min-raisers was gonna pounce when it came back around, but with the raise capping it I could come in safely.

The cap is necessary to keep two guys from whipsawing a third for all his money.

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No it isn't because beginning with the fourth (or fifth) raise all raises must be at least half the pot. Ot at least that should be the rule. That is not in Robert's Rules, it is however on the older Hilton Rules.