Actually, to be closer the monster manual (where level 2 groups get 1.5x the experience of 3rd level groups, and 1st level characters get 3x the exp of 3rd level groups), the ELs of low leel groups should be:
3rd level: EL 7
2nd level: EL 6
1st level: EL 4
(Or you could make that last one EL5 just to keep a neat progression.)
These would be just used for giving out XP awards, not for determining the challenge of encounters.
Now, two hobgoblins (EL7) would be worth 1800xp under the first system, and 900xp under the second, to a team of 1st level characters. (As opposed to 1350xp according to the DMG).