Your experience level has no effect on renshuu operation. It’s just for bragging rights.
Some people don’t want to brag, so they turn the leveling mechanism off. Others try that, but miss having a kao-chan. So increasing the difficulty level by 50% is sort of a compromise.
Levels really don’t do anything, but seeing text like “Kao-Chan Leveled Up” really gives u a feeling that u did something and some people want to increase the difficulty of getting the text so they can feel better about it.
lxrn7580 is right on the money - some people use renshuu heavily, but do not want their kaochan character to progress as quickly as it would if the setting was unchanged.