The overage feels generous to me. I'm not sure there's much of SF you can't get to with $25, even in traffic.

It seems like this is their way of addressing the problem of "being in the car". If you get in the car with your $7 UberX pass, then demand to go to San Jose, something has to happen. Getting out of the car is probably worse for the customer, so they cap the amount this pass buys you, knowing you'll never hit the limit under the intended use case.