There is a reason the cities regulate the number and type of cabs on the road; too many cabs leads to increased congestion being one reason. It is also important to license cabs and certify the drivers of said cabs. The main reason though, is so that there isn't a glut of taxi drivers chasing a fixed rider pool and ensures that drivers can make a decent living off taxi driving.
The plate/medallion system gets out of hand when non-driver entities (read, taxi companies) can own the medallions and buy large quantities of them and lease them out at a profit, driving up the barrier of entry.
What's the argument that taxis increase congestion? It seems it should do the opposite. First, people are more likely to share taxis than carpool. Second, taxis drastically reduce parking congestion since dozens of people can utilize the same vehicle in a day.
The problem is that there are literally too many cabs on the road. Cabs rarely, if ever park, and are constantly driving. Parking, and this may seem counter-intuitive, reduces road congestion. If you have many vehicles constantly being driven, it increases congestion.
Bullshit. Uber likes having those laws in place, so it can break the law and have an unfair advantage. If Uber had actually lobbied to remove those laws, then they would be deserving of applause.