Levels, Monsters, and how they individually affect a campaign setting

[Matthew]

Would I play: Nope. This whole thing was just a thought experiment for why worlds that are "mostly level 1" most be at the very least, absurdly poverty-stricken where even the nobles show off how rich they are by living in a house that has three walls. I suppose that if you keep the nerfed the cooler monsters so that the PCs would stand a chance, then it would be playable. Maybe give them all glaring weaknesses that can be used to insta-kill them or otherwise nullify their overwhelming weakness. In terms of that, it would be interesting to playtest. Maybe.

This seems to be something of a universal theme for you. As in previous such threads, I think you need to look at level based games that are not D20/3e and approach the subject from a "how can I explain X" standpoint, rather than "this doesn't make sense under my assumptions" point of view. i.e.

X + Y = Z

X = Known Factors (game rules and such)
Y = Unknown Factors (explanations you decide on)
Z = Desired Outcome (high magic medieval style setting or whatever)

rather than...

X + Y = Z

X = Known Factors
Y = Assumptions
Z = Outcome

Bosssmiley has linked one, extensively developed, explanation for how some assumptions about D20/3e would work in a consistant MMOCRPG style world. It all comes down to your base assumptions, such as the modus operandi of the inhabitants, however.