Firstly, I'm finally all better from my sickness and actually have time away from my works and school.

Also, quick note, because this was brought up repeatedly. The level system that I came up with, while taking influence from the old Tier system, is not and never was meant to replace it. I understand that the Tier system was (and might still be) used for many a roleplay, but before I took over as GM of the Multiverse, one of the biggest problems that I found with it, that I tried to deal with as effectively as possible, was that people were exploiting it's outstanding vagueness (including a few of the characters that I had submitted). 

There were people that made characters that should've been far higher Tier than what they were, but because of creative wording (or lack of detailed moderation, don't know which, could be a mix), they were accepted at a lower Tier (for example, I submitted one of my characters that could scale to fit any situation she was needed for, with her powers being set at Tier 6 levels. She was accepted as a Tier 4 character and was fighting Tier 4 opponents). This, while not the most devastating for more experienced roleplayers, is unfortunately devastating for those that are just starting into roleplaying, or who only ever intended to fight recreationally and not competitively. There were far too many people who had created characters within the proper tier, got accepted by the then-GM, started into their first few battles, and then quit because most of their opponents were just doing the roleplaying equivalent of button mashing with their higher-than-supposed-level characters.

The rule system that I set up was to make it as enjoyable as possible for whoever showed interest. If you're an experienced veteran to roleplaying, then show off your skills by defeating your opponent in creative ways. If you're inexperienced, then there's no over-powered characters that'll wreck your fun. Also, the starting Level requirement is a range to allow for those that wish to fight as a weaker (power/ability wise) character against stronger (power/ability wise) characters.

Seed, I understand your viewpoints (as 99% of my own character roster is comprised of Tier (as well as Level) 9 characters, with two exceptions), but this iteration of the Multiverse isn't for power playing, it's for fun.

If enough people are interested, I'm more than willing to set up free for all areas within the Multiverse that operate outside of the Multiverse Level System (think, like what you were describing), though the characters that are too high for the current situations in the leveled areas would be limited when it comes to interacting in the various areas outside of the Free For All section.