It would be a good thing yes, it will ultimately limit how far the big boys can run into the distance as they are capped at a limit lower than revenue.
That being said, I’ve got no idea why the PL is so determined to make the league less competitive on the bigger stage. Ultimately such rules means you will never see an Mbappe grace these shores but PSG and Madrid would remain viable options.
It’s quite clear the owners are in full on protection mode without paying much attention to the bigger picture.