Yeah I've done that a couple times in the past, but after awhile it just kinda got old you know. Whats the point of doing that if your only going to fight people that are extraordinarily weaker... just not my style.
Sides, by the time one finishes doing it to all their characters, I dont see why they wouldnt just be completely sick of the game, at least for awhile.

Really cool concept though. I still wish it would be cool if like on an Expansion of FFXI or something they released an online version of FFT where you can store more than 24 characters and have duels with other people's characters online. Granted if they did that, they would probably omit the whole LVL Down/LVL Up trick all together.