ISI, being a recreational track, aims to make competitions as "fair" as possible for skaters. This means that skaters should compete at the "correct" level, rather than skating down or up. The notice puts forth well-written guidelines on what constitutes the correct level.
Still, it can sometimes be hard to decide, especially at the lower levels, when a beginner picks up skills very fast. In the 6 weeks or more between entry deadline and competition day, it is not inconceivable that a skater can improve to the next level. Yet it is also not fair to enter the skater in a higher level in the hope that he/she will get there in 6 weeks!
But so long as everyone does their best to enter at the correct level, we will at least have a more level playing field.