I'm impressed with this system, I was totally expecting them to pull some bulshit where higher level players would gain less exp (like what they usually do) but this is neat. Best part about all this is no more being the lowest level in a party and having to suck it up if you want experience, now you can just cap the whole party to the level of the lowest party member.
Not perfect since special effects of equipment are completely negated thus forcing you to buy at least some level capped gear, but I realize that adjusting all those special effects would be a lot of work.