The bolded part illustrates horrible game design. Particularly if the players can reach similar power levels with time.
It should really take quite some time for Characters to hit Epic Levels. And heck, Elminsters around 35th level. If your playing a campaign where players can hit that level quickly, then perhaps it is a problem.
If this is really how he is intended to be used, he should strictly stat-free, and treated more as a sort of demigod, rather the Sean Connery with a staff.
I've no problem with Elminster's stats being CG Human, Wizard 29. Like they were in the 2nd Edition Campaign Setting. I see his stats as essentially meaningless, save in silly online debates.
If you fail to accept that continually saying "He's fighting threats you couldn't even understand" has a deleterious effect on player morale in most groups, then well, I think that's pretty "out there".
It might have an effect in some groups. Those that can't accept that perhaps some people in the world are more powerful then them at this time, for instance. I don't get why players need to feel that they are automatically the top dog in the entire world.
If it were otherwise, the authors would ensure their characters were reasonably powered and didn't get in the way of the setting.
I do wish more novels would concentrate on the smaller scale characters too. I get tired of RSE's as well. It doesn't need a 100 year jump to correct that.
It's inappropriate, and the reason they exist is not "flavour text", despite Greenwood's claims, but bad author pet-character-pushing.
Ed came up with Elminster when he was 8 years old, along with many thousands of other characters. He has said time and again that Elminster is not his pet character. Infact, Dragon 359 had this to say on that point. 'If he was looking for a wish fulfilment character he'd pick someone younger, saner, more handsome - and a whole lot less dangerous to be, and be around.' I think Ed knows how Ed feels about a character, and he's answered that question consistently for many years now.
If, though, we hear:
1) The Seven Sisters
2) Various high ranking Harper-types
3) The Simbul
4) Assorted other chosen of Mystra
5) The Obaskyr family line
6) That filthy spellfire witch
7) Various Knights of Myth Drannor
Given the current Realms setting as per Shadowdale: The Scouring of the Land. Spoilers!
1)
Sylune's Dead. Laeral is busy being pregnant with her twins. The Simbul is busy ruling Aglarond. Alustriel is busy running Silverymoon. Qilue is busy running the Eilistraeen faith. That leaves Storm and Dove, who are both busy protecting Myth Drannor with the KoMD. So out of those seven, only Storm and Dove might reasonably be encountered in adventures.
2) Such as? The Code of the Harpers shows that the active Harpers are between Levels 5 and 12, mostly. The ones in charge are a high level, such as Cylyria Dragonbreast, 26th Level Bard. But she's not one who will be going on adventurers, as she's busy managing both Twilight Hall (and by extension a lot of Harper activity) and Berdusk.
3) See point 1.

4)
Khelben's dead. Elminster is 'gravely wounded and hidden somewhere recovering', according to Shadowdale.
5) There's a Regent in charge. The next king is a young boy. The Royal Magician is new to the job, and still finding her feet. The Obarskyr line is in quite a bit of danger, if you ask me. Danger that the PC's may very well need to help stop.
6) Long dead.

7)
Busy protecting Myth Drannor.
but it makes for a better gaming environment than superheroic good-aligned characters who mysteriously always have to be down at the DMV whenever the villains roll into town.
*sigh* For every 'Superheroic' Good Aligned NPC, there are about ten Supervillianous Evil Aligned NPC's. Once again, I point you to 'The Concerns of the Mighty', Page 84, FRCS. It's explained quite clearly there. It's also explained quite clearly in the thread I linked to in a previous post. I am not able to rightly apprehend the kind of confusion of ideas that could provoke such a question.