I don't know if MPC levels being too low is an issue, or if the problem is just that people need to learn how to not ruin things for other people.
I've had a total of one encounter with an mpc since I started playing here again. Let me set the stage.
We were a group of 4 people of varied levels poking around in the crypts under the morninglord temple. We ran into a vampire, and (although I'd never met this monster before) a couple of the people in the group said that we should just play along with it, because we wouldn't be able to beat it. This made for a very tense encounter, because everyone was just kinda smiling and nodding to the monster as it did what it pleaded. My character particularly was put on the spot and asked to take off her armor and have a dance. Obviously she was dragging her feet while looking to the others for help, but with the situation as it was they were just sort of watching it play out.
... Then a high level paladin ran into the room, asked what we were doing, and then challenged the vampire to a fight. The vampire dominated a couple people to fight against the paladin, and the paladin beat all the dominated pc's and ran off the vampire by himself, while barely being scratched. Fun.
Now, if I take the time to think about it, maybe I am upset because my character was in the spotlight up till then. Maybe the guy just stumbled onto the scene naturally and that's how it played out. Maybe there was some pre-existing rp I don't know about that made the scene a lot more interesting.
Maybe.
To me, it just seemed like "What are you guy's doing, horror rp? That's cool, but look how awesome my character is." It took a really tense, interesting scene where the PC's were feeling helpless, and turned it into simple, completely one-sided combat encounter.
Now this is just one specific example, but it ties directly into what people are talking about here. I perfectly understand keeping your high level character in Vallaki. It is a hub, that's to be expected, but when you -know- that your character is high level for an area, you need to take a step back and let people have their moments. The server does not revolve around your character. Let the lowbies gets pwned by the monster a few times, and let them gather up a group and hunt it. Don't solo an mpc or DM event just because you can.