Yes. If you only took losses, you are capped at $3k. That is the problem.
Discussion
I’m not following - income tax and cap gains tax are two separate things, the 3k offset on income is just a cherry on top to me
The other cap losses can be indefinitely carried over to future years
If you only take capital losses, you are capped at subtracting $3k from your total AGI. I’m not sure what you’re missing here. If you took a $50k capital loss, it would take 17 years to recognize it. Most people have income and capital gains/losses, and that’s why you want the losses to be subtracted from your income. You lost money.