It cuts both ways and the Owner's comfort wins... and it's hardly about PIC insecurity.
IMHO it's about neither...it's about safety. Safety...first , Last and Always!
Both pilots, in the eyes of the FAA, are equally qualified. If the Captain starts the trip by saying, "I'll be flying all the passenger legs!" it will create a huge CRM issue. If you don't let a FO have equal flying time, this says that you don't respect the resources of that individual. When it's time for the FO to speak up, they might not...enter accident!
I'm sure it's a rarity at NJ, but any Captain that is using the "owner satisfaction" card is full of BS, and is negatively altering the dynamics of the crew.
With this said...I do agree with the 50 hour limit, if that is IOE inclusive.
One more thing to note...
Flying the airplane is a fraction of what a Captain is to manage. Do you see maritime Captains driving ships? In the few abnormal situations I've had, I found it much easier to manage when flying is delegated to the First Officer.