Caps can adversely affect business dealings, with companies unwilling to make contracts larger than the damages available. Judicial review works better, allowing juries, judges, and appellate courts to craft case-specific solutions. Juries are more representative of the people than is the legislature. Their arguments cluster in three areas. The legislature, say the proponents, as representatives of the people, is best suited.
Opponents argue that juries are at least as representative of the people as is the legislature.
The fact, of course, is that both can and do represent all the people. And we have separation of powers between branches of government because representative government does not always make good laws. So there is no right answer to the question, just a political one. It's that way, argue the proponents, because the problem is wide-ranging, not yet even well defined. The legislature has to be given the tools to act.