Doing this could create an unbalance for less skilled players (or at least ones who do not take in Denars as fast). What ultimately happens, is that only the best players on the team get to use the best equipment, causing lesser players to be at a large disadvantage and therefore not enjoy the game as much. This idea also may introduce an accelerated focus on "Gold Farming", where players will try to accumulate as much money as possible to get the weapon before anyone else; Though most means of getting money are helpful to the whole team, there is almost always a non-constructive means of doing so that is faster than being helpful. (for example, killing riderless horses gives money, but not very helpful (but a poor example because it is not a great income substitute))
However, as a skilled player, I do agree that this idea of equipment capping would benefit me, and real armies are not fully comprised of generals, but with only a small number of people at the top with the best equipment to lead their allies.
I have listed what I see as pros and cons to this idea, and I now offer an alternative:
add a set of "Lordly" equipment that costs a overwhelming amount of money, so that eventually from the bloodied masses, one great warrior will rise, clad in shining armor to lead their fellow soldiers.
(this idea can also be limited to only one person having access to this equipment. However, to ensure that a poor player who does not know what they are doing gets it, perhaps instead of high cost, have only the person who is first to (lets say) 12 kills gains access to the equipment, and then cannot fall more then 2 kills behind anyone on the team, or else that said person will then gain "the crown")