I would have no problem with other teams spending more than the Yankees; I think you're assuming I'm a fan of the Yankees having a $200 million payroll, I'm not. But I do beleive the Yankee ownership, like every other team's ownership, has the right to spend however much it wants or can; I just don't like the idea of the Comissioner dictating payrolls (call me a baseball libertarian.)
Whatever harm high payrolls do to baseball indirectly are repaired by the good it does directly (the boost places like Toronto and Kansas City see in ticket sales when the Yankees come to town, tv revenues, etc.)