I think by "level 50 cap" he means that the battles will be done under the Level 50 setting thing. Which means... you can use a Pokemon no matter what level it is because the game will put them up/down to level 50 when you're fighting.
And I'm certain he means legendaries, not ubers. IF HE MEANT UBERS THAT WOULD MEAN THAT THERE CAN BE NO TYRANITARS AND THAT'S JUST STUPID.
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