Great, then let the player deal with the consequences of attempting to conquer an area that is obviously full of great challenges before the character is of an ideal level to do so. I've read Bethsoft designers defend the easily-abused learn-by-doing system by saying that it's not their responsibility to prevent the player from doing stuff like jumping around the world non-stop to build their Acrobatics skill. I don't get why that philosophy doesn't extend to things like auto-balancing. In games like Ultima V, the Phantasie games, Fallout, even Pool of Radiance, the player had many exploration options at any given time. After leaving Tilverton in Curse of the Azure Bonds, you could head straight to the Mulmaster Beholder Corps if you wanted to. Your characters were all in the 5th-7th level range, but hey -- knock yourself out.
Auto-balancing effectively removes serious consequence from player choice. As unintuitive as this may seem, choice without serious consequence often makes the player feel pretty impotent.