There's no conceivable way they would have raised the prices to $50-150 per person for the holiday season this year. The backlash on that would have been unthinkable.
Contrary to what you seem to be saying, Disney is not unaware that
Genie+ has to offer people a satisfying experience with real benefits in order for it to be worth the money. With 50% of guests buying it on the most crowded days, Genie+ becomes much less useful which really hurts guest satisfaction. Disney does NOT want this.
Disney is not so completely unsavvy and incompetent that they don't recognize that people won't pay a significant upcharge per person for a system that is too crowded to provide much benefit. They have been watching Genie+ carefully since its introduction. They, like most people here, recognized that too many people were buying it for it to be useful.
A price increase makes much more sense than a capacity cap at the same price. Will it take time to get that price up high enough that people stop buying it? Yes. Is that the ultimate goal? Most likely. Will the system be better for those who are willing to pay the price when significantly less people buy it overall? Yes. Disney knows this.
Is everything Disney does ultimately about increasing profit? Of course it is. Does Disney realize that guest satisfaction DOES matter for increasing profit? Of course they do.