Actually, this whole thing sounds just a bit kooky to me. No offense to Gellion, but I think there must be some details that we don't have.
However, that has litle to do with "fairness" in this case. As a DM, it is fun to make neat NPC's. Especially if you don't get to play in a game very often. But, as a DM, you have to have your fun making the NPC and then give the PC's a reason to leave the NPC alive, or write off the NPC when the PC's take care of the problem. There is no reason to get too attached to your NPC's because the game should really revolve around the PC's, not the NPC's. And no, that does not mean that the game world revolves around the PC's. Without the full story, I would say that being put up against opponents so much higher than you is unfair.
Maybe the DM just needs a bit of a break? Maybe if somebody else in the group would be willing to run a module that everyone else could make up some characters for and take a few weeks to go through it. Then, the DM could get a chance to play a character and have some of the playing side fun.