I tend to be against a "level squish"

mainly because it feels like you suddenly didnt put in all the time it took to get to the higher level. stat squish I can understand and dont mind, but taking away levels I have earned is a harder thing to wrap my brain around. its likely just me, but I seriously hated it when WoW did it, and was the final nail in that particular coffin for me. to me, it felt like they had taken away the final indicator that I had put any time into the game at all.

years ago I played Anarchy Online, max level was I think 220 or something, but gave you something to go for. never reached it, but I think was an incentive in some ways that a level squish promptly removes.