foreach($capslist as $k=>$cap){
$dropdown .= '<option value="'.$k.'">'.$k.'</option>';
}
My guess was how the array was structured. Each Array Key was the actual name of the capability, with its value being a simple boolean determining whether or not the given user instance had the permission to perform that given action.
You were searching for the capabilities by name, and since you were only seeing 1s in the output, I figured what you were looking for was in the keys.