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There's a wide variety of opinions on level and RP, as you're about to see. 
Personally, I feel that, outside of special circumstances (such as NPCs in a plot), level puts a cap on "RP power." So, if you're a level 5 newbie Thaumaturge, it's not appropriate in my mind to assert OOCly that you have the same power level as a master of the Discipline. However, I have no issue with people lowering their effective "RP power" from what their level would indicate, so long as they're consistent about it. I have no issue with someone who loves the game RPing their level 50 Dragoon as an unpracticed newbie having just picked up the spear, a street rat, or an itinerant trader with no combat expertise whatsoever. The important thing is consistency. When the chips are down, the itinerant trader shouldn't suddenly realize he's packing a Gae Bolg Novus and 50 levels of Primal butt-kicking just because the Character window shows that.
By way of example, L'yhta currently has several high level DoW classes. However, I'm quite explicit that she's not anywhere near that level of power ICly. She views and refers to herself as a "sorcerer," a person who practices all three Disciplines of Magic, and is RPed as having minimal expertise in the Disciplines of War even when she's augmenting her skills with magic. I have no problem asserting that she's quite powerful magically, since she's been RPed since beta 4 and has all three of those classes at 50. I do, however, note that she's less powerful than specialists in different magical arts. She's not as good at healing as a person whose concept is being a healer, and she's not as talented at blowing things up as someone who specializes in Thaumaturgy, all other things being equal.
Naturally, this doesn't say anything about IC assertions. It's certainly fine for a character to talk up their power, and that can certainly be a fun aspect to RP.
In terms of ICness, I'm very nearly always IC. You can assume that you can walk up and engage her IC whenever you might see her about, and she can explain why she might be walking about with a lance, a bow, or a staff.
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Personally, I feel that, outside of special circumstances (such as NPCs in a plot), level puts a cap on "RP power." So, if you're a level 5 newbie Thaumaturge, it's not appropriate in my mind to assert OOCly that you have the same power level as a master of the Discipline. However, I have no issue with people lowering their effective "RP power" from what their level would indicate, so long as they're consistent about it. I have no issue with someone who loves the game RPing their level 50 Dragoon as an unpracticed newbie having just picked up the spear, a street rat, or an itinerant trader with no combat expertise whatsoever. The important thing is consistency. When the chips are down, the itinerant trader shouldn't suddenly realize he's packing a Gae Bolg Novus and 50 levels of Primal butt-kicking just because the Character window shows that.
By way of example, L'yhta currently has several high level DoW classes. However, I'm quite explicit that she's not anywhere near that level of power ICly. She views and refers to herself as a "sorcerer," a person who practices all three Disciplines of Magic, and is RPed as having minimal expertise in the Disciplines of War even when she's augmenting her skills with magic. I have no problem asserting that she's quite powerful magically, since she's been RPed since beta 4 and has all three of those classes at 50. I do, however, note that she's less powerful than specialists in different magical arts. She's not as good at healing as a person whose concept is being a healer, and she's not as talented at blowing things up as someone who specializes in Thaumaturgy, all other things being equal.
Naturally, this doesn't say anything about IC assertions. It's certainly fine for a character to talk up their power, and that can certainly be a fun aspect to RP.

In terms of ICness, I'm very nearly always IC. You can assume that you can walk up and engage her IC whenever you might see her about, and she can explain why she might be walking about with a lance, a bow, or a staff.
The Freelance Wizard
Quality RP at low, low prices!
((about me | about L'yhta Mahre | L'yhta's desk | about Mysterium, the Ivory Tower: a heavy RP society of mages))
Quality RP at low, low prices!
((about me | about L'yhta Mahre | L'yhta's desk | about Mysterium, the Ivory Tower: a heavy RP society of mages))