Either of those changes individually would have been good.
1. Raise the cap to give the more devout players somewhere to go. Continue treating VR as "how much has this person played", with better players gaining it faster, weaker players gaining it slower. Continue to disregard actual skill in matchmaking.
-OR-
2. Add more rubberbanding. Punish harshly for losing to 'worse' players and vice-versa to make your VR better reflect your actual skill. It will eventually settle on your actual skill level with little to no positive gain, and matchmaking will place you with people right around your skill level.
One or the other would have been fine. 2 probably would have been better. But they went and did both, and it ended up like...
1+2. Add more rubberbanding. Punish harshly for losing to players who haven't played as much but may be better than you and vice-versa to push everyone toward the same average VR which ends up not meaning anything. Continue to disregard actual skill in matchmaking. Raise the cap...why, now that we're pushing everyone to 5k?
I'd be happy with a VR of 5k if that actually reflected my skill level and didn't seem like the bottom 5%. If the cap is 100k, an average racer should be able to achieve at least 50k.
edit: rep had another good idea.
losing vr should be constant no matter who it is, but gaining should change based on their VR
That way you don't get punished for playing with your low-VR friends, but it's not a good method of boosting your VR.