I agree, they should add the capes with experience requirement, but not increase level caps past 99. I still don't understand the whole 120 dungeon thing.
To anyone who finds prototype images or concept art of what they are officially using, please be sure to post it here. I tried to find some more myself without being lead to some sketchy websites.
I personally don't see any harm in adding the content to the game, but I'm a bit confused as to why there are no benefits to the cape outside of a different look....they should at least add new emotes!!