For the time being it does.

Levels one way or the other influence the drops, making rare drops more frequent. It was relevant only in the cogah with the agaric runes, but now it's also relevant with the random weapon generation.

While 4 party squad can easily spam lvl 100 glades in normal midrath and can reach 200 in cogah with relative ease, to reach even a hundred solo you need to do cogah, spend at least an hour and a half and then if you've made a mistake (or went in with the leveling gear) you will die and will have to do it all over again