DDO's invention and implementation of "max caster level" is weird and confusing.
However, while removing your DDO-invented mechanic, please do not remove the core D&D mechanic of damage caps on lower-level spells. That is part of the fundamental balance between higher-level and lower-level spells.
There is no such thing as "max caster level" in 3rd Edition D&D. So far as I know, it is purely a DDO invention.
Spell damage caps are in 3rd Edition, but didn't start there. They were also in 2nd Edition; I just check my 2nd Ed. PHB.