

We already don’t. Like 15% of postdocs become professors and its similar for PhD to postdoc. A vast majority of PhDs go to industry or government work.
As to whether you want most PhDs in academia that is a values question of whether a PhD does more for society in academia or elsewhere.
I’ve never seen an application without limits. The NIH set limits in the 90s and then further reduced them in the 00s.