You are so right. I have always advocated that owners are businessmen first and have every right to try and make a profit with the team. However, to some extent, I would like MLB to maybe cap the profit you can make. Maybe the cap can increase as your revenues increase.
That said, you are also right that he fails to understand that with a better team, people get more excited and are more willing to come to a game, but stuff, etc. when they think the team is trying. I know personally that while I love baseball as a whole, I've only been to a few games this year. Why should I spend money when I know that doing so won't help the team, it'll only increase the owner's profit?
Based on the national TV and XM contracts, revenue sharing, and even the 1M tickets sold, there is no way the Rays are making less than $30M in revenue - yet that is the level of team spending on players. If they are bringing in $50M, and spending $30M, while another team (say the Braves), are making $90M and spending $80M, then something is wrong and I'd hope MLB, in addition to slowing teams like the Yankees and Red Sox down, will also cause teams like the Rays to pick it up. It sure would be fun to pull for a team that is at least trying to win rather than acting as a major league farm team trying to turn the biggest profit possible.