Regarding exploitation of leves, it was interesting to see some screenshots that someone sent me links a little while ago (I won't post the links or the images here right now as I'm not sure whether that would result in my getting banned/suspended - though I believe you can find them on another popular forum site) to a conversation someone had had with a GM showing SE were aware of the Necrologos: Levinshower issue and were happy for people to continue doing it. Of course, that may have something to do with the fact that the issue was fixed in the last patch.
If this means that SE are "allowing" people to exploit certain issues because they are aware of them and are planning to fix them, or can potentially break out the banhammer in other situations, doesn't that send a mixed message? It's all well and good to take the high ground and say "then don't use any exploits at all", but if they've been "sanctioned" by SE until they're fixed, then all you're doing is depriving yourself of a potential opportunity for something (depending on what the exploit gives you).
Before anyone drops the "misunderstanding rant-hammer", my position on this issue: I would personally recommend the OP's advice in avoiding any exploit that you have identified, and to inform the GM's of this immediately.
However, I would also like to take this opportunity to suggest to whoever is watching these forums on SE's behalf that if SE becomes aware of any exploits, it would be sensible and proactive of them to make it immediately clear via the forums whether it is something SE is happy to continue (ie: you can go and do it until we fix it), or if SE will lay the smack down if you go near it before it is fixed (and in these situations, I feel most sorry for those few unsuspecting players that discover such an exploit accidentally once and get caught up in SE's blanket knee-jerk banhammer that tends to occur in these situations).