I've read the posts and I think I've found a solution. Since before the cap, the amount of mobs possible in one place was limitless allowing for upwards of 500+ mobs after several hours of afking. Even with this surplus of mobs, it seems from people posts that it doesn't affect server performance
TOO badly. So.... if you raise the cap for spawners to something like 100, assuming most spawners keep about 500 mobs out on the server, that's 400 less mobs per spawner. Now it didn't lag much with 500 mobs, with 100 I doubt it will affect the server at all. A cap of 100 would also allow for minimal amounts of afking, say 1 hour. Afking while gaining experience is what spawn farmers are usually used for and a high cap rather than being limitless will reduce lag and still be useful for afking.
http://minerealm.com/community/viewtopic.php?f=7&t=3344
I also wanted to pointed out that there really isn't much of a difference between C and D. I would think that a country system is no more than a way to divide into different factions and such. Plus, something like that only adds to the game while not actually changing things in vanilla. I would think that limiting mobs is something that breaks "barely vanilla".