1) No, you're not on crack. You're just doing a fairly unusual thing of trying to build a system that actually appeals to all those kinds of users. The only other product I can think of offhand that *tried* to do this has been Microsoft Office, and they've made rather a hash of it.

2) I think they're right to start with. Once you have substantial amounts of user data, you can see if there are other natural levels (and whether specific functionality got put in the 'wrong' level).

3) Agreement with metahacker that the simplest level needs to both be the default and sound attractive to most users.