Skills: not true. Standard skills, yes, but pump them with benefits, like attractive, and numbers can get fairly high. Even without a numeric bonus, they can get fair mileage for their pp.
Also, 7 ranks of super strength is what, ES45? Several tons is better than no tons, and at that level they'll likely be more sneaky than kick-in-the-door. I imagine the players will go about collecting large rocks and hurling them through the air, or lugging massive wagons loaded with barrels of oil or explosive powder.
The PCs may be PL1, but the rest of the world isn't. If they can interact with it, set up circumstances (like tricking the giant into walking under the portcullis before closing it on him) that's totally fair.
One trick ponies... well, they're PL1 with 15pp. Heck, if they are utterly average with one thing they can do, like transform stuff into gold, they can buy their way into power. If they can fly, they'll fly the whole game. Wolverine is a claw monkey with healing powers. Maybe they're a character with 10 in every attribute, right, but they pump their resurrection power so it's automatic.
They can take flaws to their powers, too, right? So maybe the high Str only works for lifting/throwing rocks, not trees or metal? Or they can have leather armor, but it doesn't do anything for them when they're struck by magic, lightning, or piercing damage from arrows. That alone should do for +3 leather armor. Think of it as the low-level WoW character who fights kobolds for tattered leather vests.
But I do agree that PL1 is really limited. It could be really good for story-telling that apprentice-level story. Very OD&D, imho.