PoS alone means centralization which ether moved to some years ago from PoW. But what they said few years ago has been done as they have increased the validators staking from 32 ETH to 2048 ETH. That is 64 fold increase and it means less people will be able to stake and more centralization in what that is centralized in design.
This does not do what you think it does. Is it better for a single entity to have 64 nodes with 32 ETH and have fake decentralization, or is it better for them to have a single large validator with 2048 ETH? The idea here is that large providers consolidate and save bandwidth and costs. It does not mean that fewer people will be able to stake, you do not understand the terms well. It has nothing to do with individual people staking at all.
I read online that the Pectra upgrade will reduce transaction fee. I am not using ether which will not let me know if the transaction fee has reduced or not. Is it true that the transaction fee has been reduced?
The intended target are layer 2 fees, not layer 1 fees.
how can you have a cap on participation in pos?
There is no cap.