I agree. And the school is called transmutation.
I'll put it under level 2 for now, but I don't think it belongs there as-written.
That's why I put the clause "the new effect is determined by the DM; it should be roughly equivalent in power to the slot level used to cast the original spell" in there. It's no more broken than Wish is
Incidentally...
Fish
Wash
Wisp
Cash
Win
Dash
Mist
...