Moral of the xp/leveling system on p99 is "beggars can't be choosers."
But to try to answer your questions, yeah most people know how the xp system work, the wiki is correct about how xp works, and while some people might try to avoid grouping with certain levels, it's much more common to see people who refuse to play with hybrids than with someone who is 3 levels higher than they are.
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