penalty Sure this is a penalty the DM has more work to do all of his ECLs should be raized but .5 and EL 1 should be a el 1.5 in this case. i just becomes a balance issue.... look thre UA it has some more info on it...
THis variant is not somthing that you would just have a DM normaly would build a campaine around having all PC's gustalt because it is a more powerulf group. The DM should bring more mooks in to rooms give a few of them a level or HD adjument and major villans should also be Gusltalt...