It's important to remember that, even when you're mid-level, you're not average. Right from the start, you're friggin' amazing at what you do: level within the confines of the story represents less of an actual progression of your character's skills and more the temporal progression of your character through their relevant story. It's not like becoming the Champion of the Great Hunt spontaneously makes you a better BH; the title of Champion simply represents you getting *recognized* as being the best damned bounty hunter around, when it's been true for quite a while already.
I totally agree with your point. Mostly I think it's the randomness
that just feels wrong to me, rather than the level (after all, you can do the flashpoint again at 50, and take that as the "proper" version). We don't actually know who killed the guy, because everybody
killed him, which leaves me a little unfulfilled as a Star Wars canon nerd. Until there's an official canonical story, it just seems like the story isn't properly ended.