When you increase the level cap you also need to adjust the leveling curve. Either by making Pokemon level up faster or by providing better means of dealing with those now even higher leveled threats. Alternatively, if we took a similar approach to the games as was done in the Disgaea series (max level cap 9999), then the main story would still play out as normal and anything beyond level 100 is postgame. At that point, taking into account that most postgame challenges (online or not) use level scaling, it kind of makes a higher level cap kinda pointless.
To account for the increased level cap, the games actually need to provide more challenges that need to be solved by grinding. Legendaries that are way too high in levels, that just stomp on your party unless you grind your way up and stuff like that.
Honestly, I could see them sooner doing away with levels altogether than raising the level cap. It just seems way to troublesome in terms of balancing. And we all know how good GF is when it comes to stuff like that.