Some people need to cap everything at some point, which is ok so long as they really know LO has had enough sleep overall, it's due to needing to have enough A time in the day for LO to get to sleep, if they end up UT and don't take their nap at all then in the end they lose move sleep than they would by it being capped at a reasonable and respectful time. It's often during a transition period and nap dropping rather than long term.
Personally I prefer not to see a routine with all sleeps capped, when there is at least one natural WU you can feel reassured that if he need more sleep he would take it.
As you've only capped nap 1 once I really don't think there is an issue.
was wondering if it's okay to let him sleep in until 8am, but won't do so if it messes up with his schedule.
At this point I wouldn't. I'll try to explain why. When he started refusing his first nap he was UT, he needed a longer A time to go down for the nap peacefully. If you allow WU to move to 8am this shortens the A time before nap 1 and he is likely to refuse again. The only solution to that refusal is a later nap 1...but then he may refuse nap 2 so nap 2 has to move later... and he already has a short A time to bed which he is currently happy with but if it became shorter he may resist BT. So you see there is a knock on effect through the day of everything moving later if you do an 8am WU at this point, it could result in a later BT and then as he wants a full night sleep he starts needing a later WU, 8.30, and so the problem cycles.
I hope this makes sense. Do ask if you are not sure.
So, for now, and for as long as he is happy, I suggest continuing with this routine. It sounds like it's going well and he is well rested. Lets give you a plan for nap 1, just in case he is not awake when you go to him at the 2hr mark - how about we say if he is not awake then you give him 15 extra mins and plan a cap at 2hr 15, this could give him the few mins he needs extra to naturally wake.
If nap 1 is being capped daily or he resists going down for the naps or BT or there is any other change on a regular basis then we will reassess the routine at that point. By 'regular basis' I mean a few days or a week, it's fine for there to be the odd day where things are not totally spot on, if he is ill, teething, you go out to a party, or there is something else which disturbs the routine as a one off or short term thing.
When we reassess there is a chance we will look at reducing or dropping nap 2. It may happen soon, it may not happen for a long time. I'm letting you know so that you can prepare for the future changes. Don't panic about it though, we are here to help with finding a suitable routine whenever it is needed.
Try to take some reassurance from the fact that when he started to resist naps and was crying at nap time, it was really only a few days or so, and you got through it. If the routine goes off again like this you know you have already survived it before, it will be pretty much the same, some crying, you sooth him, we find a tweak that works and he goes back to being that lovely smiling boy again.