The problem is that cores don't have a place in the system as they are an end-game gear investment currency while Infusion is not an end-game grind like that of masterworking gear, the original purpose of cores.
The idea of Infusion not being a free joyride and should cost you if you go crazy is a true one, and this is easily satisfied by the costs without cores. (You literally can't pull 10 max price infusions without dumping all of your Glimmer) With cores, this idea becomes overkill as the system pretty much now exists to piss you off since cores don't drop nearly as much as they can go.
However, increasing the amount that is provided is merely a bandaid fix. It turns cores into redundant materials like the others we have when it's supposed to be a high investment currency. It solves the issue by creating another one and it makes it entirely pointless for them to even be in infusion in the first place. stockpiling them beyond 500 literally proves that something is wrong if people feel compelled to hold onto so many. It's clearly a sign they're stockpiling so that they can infuse freely when the next level increase happens. Those people aren't special and don't deserve 0 infusion trouble because they felt grinding for those was somehow worth their time.
Cores represent an advanced player choice
Infusion is a basic player choice
Advanced currency in a basic system sabotages both the system and the currency itself.
Hence the name: Infusion Cores. It just doesn't work out in the end if they stay.
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