I wasn't arguing against the loss of honor - if anything, that was meant to be for it. You're breaking an oath at some point, the question is just the severity.
I guess I did forget to comment on the topic... I also didn't read the whole thread, so forgive me for any overlap. Sometimes restating is good anyway. (I'll make an effort to read it tonight, since I've stirred the pot.)
I'd be in favor of raising the cap, maybe even making it unlimited. Canceling it should be possible, too. You see, to me, as a Judge in the past and currently, I find fines to be almost pointless at a functional level. If you put down a fine too big, people can't pay it... which doesn't actually cause any further trouble anyway. Too small, people just pay it and go about their business. Worse yet, the ones who do pay now can't fund their unit and need to ask for gold - oh look, no damage done. The war is more important than the small crime.
What is does do, if you're lucky, is cause a RP stir. People are insulted by the fine and make a big deal about it or people cite it as a reason to shame others. The social effects can be massive if it gets really played out.
Removing the cap allows a greater range of "I'm this upset with you." Slap down a huge fine on someone for the whole realm to see and you'll draw attention from more than just the target. Canceling it allows for a appeals, forgiveness, or other deals (like "Community Service", where a noble is ordered to do Civil Work to make up for it).
Long story short: Since it's a symbolic gesture anyway, let it shine as brightly as the player wants it to.
