I think it's a good question- my inexpert thoughts- reading levels may have meaning if kids are struggling with reading.
I have found that people (kids and people in general) who enjoy reading and don't struggle with it, tend to read at many levels with variety. What advanced readers don't seem to enjoy is formulaic plot- unless, like me, they are a sucker for a happy ending, and occasionally read such a book for escape.
My DS7 is supposedly way above grade level in reading- but I know it's only certain kinds of reading. The kind that involves adventure/mystery/fantasy and is primarily plot driven. He is probably only a year or two above level when it comes to realistic fiction- especially understanding a character. I think that character driven books tend to be more difficult for most people because it requires advanced understanding- and for kids, more experience than they may yet possess.
Just thoughts:)