This becomes highly visible where default IPACS textures are poor.
For instance, my Caribic scenery (Petites Antilles) requested me to generate Level 7 too, otherwise Level 9 scenery pops up in the distance when flying GA from an island to the next one, even as low as 5'000ft (default IPACS textures are scattered with clouds).
That's interesting, thanks.
I take another look to see what I can do to generate level 7 output. As you say, it could just use level 9 areas as input.