I support this idea.

My thoughts on overleveling as a problem are that I think some of it can be mitigated by undergearing yourself, since that's really where the stats come from -- but the issue we can't really work around now is that for a large chunk of HW though EW, your level is going to be at least ten over the zones your quests send you to, so there is no thrill to first-time exploring new zones when you've only just gotten to them in the story but you already know nothing is going to try to attack you unless you attack first.