Small market teams need some kind of advantage, because the top players won't otherwise want to go there.

If the Cavs, Hornets, etc. are receiving luxury tax revenue, it allows them to spend more as well. And I'm fairly confident in saying that every owner wants a winning product on the court, and this revenue sharing system should help certain teams who can't get over the hump of mediocrity due to financial constraints.

Also, Gilbert spent A TON of money to keep LeBron happy, so I'm not sure why he is used as an example of a cheap owner.