That would be one of the worst things to happen for a small market team. The stars would always go to a big market team once they become FA even for less money because the endorsment money they would make there would make up the difference and still leave them with a massive chunk to play with.
Hard cap will kill off the small market teams.
I'm not sure how true this is. A hard cap virtually ensures that there will only be room to pay one or two stars per team. For example, if the hard cap is at 54, how are the Lakers going to get Lebron once they pay Kobe 20 and Pau 16?
Of course, when the Lakers DO have cap space they (and the Knicks, Heat, Bulls) will be the desired destination, but its a bullet they can only really fire once.
Part of the reason I don't think it helps big market teams is I doubt they are the ones pushing for it. My guess is its the small-market teams who are pushing for it. They could control their own spending and restrict themselves to a hard cap right now if they wanted to, but that's puts them at a competitive disadvantage against the teams willing to spend.
Either way, I don't think the hard cap is likely. My guess is the major change will be shorter guaranteed contracts. Like three years. Players won't like it but it will help the fan experience in two major ways:
1) Obviously teams won't be hemmed in by killer contracts and their will be easier paths to rebuild.
2) It will keep players better motivated not only to play well, but to be a better teammates and citizen. There wasn't anything financial that kept Zach Randolph from being an overweight jerk when he was in year two of an $85M contract. I'm sure some of the progress he's made this year is due to age and maturity, but I've got a sneaky suspicion some of it his starting his contract push for 2011.