Personally, I love your solution to this problem. It really rankles me to speed by on my Ilum dailies and see the same lvl 12 gibberish-named characters sitting by all chest spawn points. This is definitely NOT working as intended. I also took the time to open a ticket regarding these exploits on my server, but after being left open for over 3 days it was deleted without a word.
Thanks for the great customer service Bioware!
Every morning as i trundle out to do my dailies on Ilum, I pass by the same level 12 Sith warrior.
"Hello and good morning, Wsxxsw!" I say, with a jaunty tip of my hat.
P.S. I hate these kind of easily remedied exploits.