The level range ensures that people are almost always in range to other players doing the same content. If you're fighting over the rights to some camp or dungeon, it's very unlikely that someone more than 8 levels higher or lower will be trying to claim the same spot. With a 4-level range, that'll happen all the time. Maybe +/- 4 might be decent for the first twenty levels, but after that, it's more trouble than it's worth. The level range is there to prevent PvP only in situations where it serves absolutely no purpose, like a level 50 preventing anyone from leveling in Crushbone.
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