Erizon
I don't think Ryzom needs to raise the level cap. It doesn't serve any useful purpose to how the game is structured, and it would require a lot of effort that could, instead, be spent adding other features to the game. Raising the level cap is more than just changing a couple of maximum values in the code, whipping up some new grind fodder in a new randomly-generated zone, and boom you're done.
One question and one suggestion:
If instead the level cap just gets raised infinite whithout creating new environments/mobs with higher then current level so that some "mad" people could still grind to achieve higher levels, would that be an option? The 250+ levels only provide better percentages in 250er skills and some new titles (and maybe only a handful of new (and expensive) skills). I still think that some people would still think it's great. As with every level increase the XP goes down and to level up harder there will be a kind of natural end to it at some stage.
Do you still think it would require great re-balancing of the game?