1 month after a wipe it will also be unbalanced. Some players rush to CC, others start to do jobs instead. CC players will already crush those low-level players who are then starting to make rares. Then those lowbies start to get better and then those CC, some now maybe DC1, start to get their own rares to stay ahead.
We're already in this situation. No need to start the process again. I still see new players starting and they soon know what they're up against but they don't leave; they want to train and get better.
Is it right to say that the factors that contribute to your perception of the game being unbalanced are i) level, and ii) rares? The game allows the players to find balance because each can achieve the same as the next. I have a dc1 priest that dies fast in war but I am making my rares to live longer and doing my quests for dc2 to get stronger. I love the challenge. Ultimately, the game would be more fun to play with everyone at max level rather than all at level 1.
I think the problem lies in keeping the d4's attention. What is the end-game in DR? Other games suffer from it too. What to do when you've got no more levels and tactics to grind and your bank is full of g10s (I exaggerate, but you get what I mean). Those players become victims of their own success. But I feel that their dissatisfaction should not be allowed to affect the game experience for other players, those players who have not hit max, and still want to achieve.
Rather than calling for wipe, call for new and interesting things for high levels to do. Give people a reason to come back and blow the cobwebs off their dusty d4.
editted for clarity.