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If each team can spend the same amount of money for all the players on their roster, then there is a chance for all the teams to have an equal amount of talent. Since all the Major League teams will have the same purchasing power it does not mean that every team is going to spend the maximum amount of money, because they might not have that much money to spend...
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There is always going to be teams that are not as good as other teams it is all about making good decisions by general managers, not over paying average players, and getting good players for good prices.
An example of the salary cap not keeping teams competitive is the New York Yankees of 1998. The Yankees basically bought their World Series Championship like the Marlins of 1997, but they proved what big difference it makes when you have the money to have five all-stars on your team...
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