how would it. if the cap is 250 on each at peak times. to me it seems to drop at peak times. hense we get 350 in one and 120 in the other and both droped to 100.
First, it doesn't drop that sharply at epak times. The big drop is once per day, when arena caps are getting into effect. That's at 12am, far from being peak.
Now have a look at how that works (I posted that stuff not long ago, but where we go again:
That's how arena population develops on a typical Friday. Actual numbers, sampled by me:
(Yes I know... I should have used different colours)
The sole reason sharp drop in max capacity is to balance player numbers between both LW arenas as quick as possible.
If you set absolute minimum cap to 250, people would still stream into the arena with most players already in, until that arena reaches its cap.
Which would then result in LWO 250/250 and LWB 20/250. same problem, but now LWB would take much more time to get to the numbers required to raise LWO caps again. Simple maths.
Example with minimum cap of 200 instead of 100:
See that in reality (first graph) it took LWB about 1 hour to get to hundred players. If minimum cap in LWO had been 200 (second graph), it would have taken more than 2 hours for LWB to get to 100 players. If you set minimum cap even higher (250, 300 or whatever), that effect would be even greater.