I don't understand why so many people complain about the powerful NPC's. Why is it so unrealistic to assume that someone besides the PC's has gained a few levels? And who says these powerful NPC's ever need to show up at all? I've DM'd in the realms off and on for 5 or 6 years or so, and I think I've used Azoun once, and even then the PCs didn't even meet him.
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Yes, Elminster is a high level wizard. He's a staple of the campaign world because he's Ed Greenwood's alter ego, right down to the beard and all. Last I checked, Mordenkainen was Gygax's alter ego as well.