Somehow I don't think level one would be nearly as easy if they were. Seems to me that the levels would spike in difficulty at level 3. Because by then the NPC's would have a pretty good idea what your all about. I think they would gang up on you, no waiting for you to reach the boss, the boss would confront you WITH henchman. It might be a stomp unless you found a place to hide.
Here's a second idea:
No character resets, you create a character and if they die, they die. You can create a group of characters from scratch, but you get no second lives. The character design is such that it won't allow you to create the exact same face twice. So if you create a character you like, be careful not to kill them off in a battle you know you will likely lose.