I would support this idea completely.

SE is always using the excuse of "server limitations" refering to the space characters use (which is a lot suggest SE itself) we all know items use also quite a bunch of server data, all starting character have not only the allocated room they use in the servers which is all inventory slots (even if unused they still "reserved" for them) but they start with some gear and items. Basically they wasting server space by being level 1 forever.

Just as people supported housing decay, a 6 month rule to delete level 5 or lower characters, with a warning in the character selection screen would be a good idea to free all the server space is always the first excuse SE blands for basically every single problem this game has.