My issue with this is that it changes what level 7 means to the PCs.
Is level 7 "you are a competent warrior", or is it "you are the best swordsman in the empire"?
So when you face pirates, are they competent warriors or are they strangely better than the best swordsmen in the empire?
This has knock on effects beyond world building -- in-adventure impacts. If PCs fighters at level 7 are world-class fighters, then seeing a dozen dirty pirates the PCs can very safely assume they aren't all world-class fighters. Because that would be ridiculous, wouldn't it?
In turn, this kind of information about the world means that the PCs can look at enemies, and have an idea if this is a "run away don't fight" or "curbstomp" situation, without the DM having to always telegraph it manually.
It also means that the DM is "forced" to up the stakes for higher level PCs. If level 7 PCs are "best in the empire", a fight against 15 pirates is not a suitable conflict, unless said pirates are somehow supernaturally insanely powerful. And if they are, the stakes are probably more than "we found some pirates".
A problem with D&D that many DMs complain about is how it their adventures stops working when players start getting L 5+ spells. But if the stakes of the game are consistent with the players level, when planeshift shows up it is appropriate for the game. L 7 they are world-class combatants; L 13, they can take a sunday brunch in heaven, L 17 they can reshape the world with an action.
OTOH, if at level 7 they are fighting mook pirates who are 75% as good as them, and at level 11 they are fighting mook pirates who are 75% as good as them, and and level 15 they are fighting mook pirates who are 75% as good as them... because you scale foes up to match the PCs capabilities, without scaling the narrative scale of the PCs abilities ... then suddenly entire categories of world-shaping spells start breaking the game.
I mean it can and does work! It just is an issue.
Yeah, I've run into this worldbuilding for a quest story/game version that I run. Where I've currently settled?
Levels 3 to 5 are trained warriors. Before this you have your new recruits and the people who don't see combat very often.
Levels 5 to 7 are specialists. The marine who is an action hero movie star type and can clean up a room of trained warriors.
Levels 7 to 9-ish are "best in the region" types. Maybe a city leader who doesn't adventure as much as they used to, or a war hero who retired. They aren't the pinnacle for an empire, but they'd be the top competitors in an empire wide tournament. An Emperor likely would have a handful of such individuals in their employ, and most powerful nobles probably have one.
Getting up to levels 11 to 13, you are the best. This is where, to shift analogies, I'd put the pope of a religion, or a Blessed Champion. These are once in a life time masters.
After that? You stop really having comparisons. Everyone in the world just starts wondering how what you are doing is possible, and speaks in hushed whispers about if you are the Reincarnation of THAT PERSON in your field who did this impossible task once and then died as a legendary hero.
On a note. The leaders of a religion, if DnD is to make logical sense, MUST be rather high level clerics or paladins (I've settled around level 9). Yes, in our world it makes sense that the leader of a global religion might be just an administrator, but we are dealing with a world where the gods are real, the demons are real, and your global religion is also likely keeping a few apocalypses in their bottles. No god with any sense is going to have the leader who knows where the god's secret weapon vault is located be a level 2 paper-pusher who is just beyond helpless if even a mid-tier threat can reach them. They are going to be blessed with so much magic, that even if they have no combat skills, they can still blast apart mid-tier threats.
Does it up the power of good in the world? Sure, but it needs to be upped a little bit or it stops making sense that evil hasn't crushed them to dust yet.