I do this by mob con as well. At level 5, level 1 mobs no longer give you xp, etc. Then if you wanted to get super deep into it you could control loot by mob level via perl (default.pl in whatever zone folder you're wanting it in)
There may be a more efficient way to do this, but this method is what I use.
Edit: You can also have the player port themselves out of the zone upon reaching level 6 by perl.
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