When I have a titan with say 5-8 cap ships, yes this mode would work well since that takes a long time. When all those cap ships hit 10 and I'm still fighting other titans and full SB's the titan hits 10 quickly.
Max fleet capacity having all cap ships 10 is interesting, but I've really only done this the times I went for the no frigate achievement. There'd also be a large imbalance since the loyalists could just sit in their grav wells with 2 SB's, a titan, and their defensive bonuses. It wouldn't be possible to kill a capital ship and force them to have a ship back at level 1, but honestly who is more likely to lose ships in that scenario.
