Gotcha! That's what I figured too... For example, I jumped my warrior from 60 to 80 with crafting... Even when he's running around in 25-30 territories, he's still getting occasional drops at his level. Even if I get a light armor piece that I'm just going to merch, a lvl 80 piece is worth more than a lvl 60 piece. So for the 30 minutes I'm going to spend on my next story missions, there's more profit if I spend those 30 minutes as an 80 than a 60.
Plus, I don't have to worry about where I can go or not go... Plus, while I miss the excitement of upgrading armor, I don't have to keep constantly checking on it and can start working on making something I can feel good about that I won't be replacing in 7 more levels.
Plus, my light and medium armor characters could step into a whole fresh suit when they hit 80 from all the stuff my heavy armor 80 found for them.
I'm seeing now that in my next run of alts that it would be more effective to start them off with crafting rather than wait till the end... And to hit the dungeons as I get to them and take advantage of the level locked loot.