Sorry for the bump. But I just feel like sharing my dislike for levelled items.
I've just come across a second time I've had to pause my progress through a quest line, because of the weird geek-OCDness in me wants the better version of an item.
Firstly it was College of Winterhold and it's Mage's Circlet. If I remember rightly, it wasn't that bad, I only needed to raise 2 or 3 levels. Just found a Bear and used Flames and then healed it for a while.
I'm now level 32 and doing the Main Quest. And silly me, I forget about the Dragonbane sword (although in my defense, this is the first time I've touched it), and now I'm at that quest where you can get it. I've got to raise 14 blinking levels(!) to get the best version. This makes me an unhappy gamer at the moment.