Link, you must make sure that the beta is not published when it's requested, but when it is fully done.
I think, you've seen the stress on beta2, when the major evolution bug appeared.
Well, it's an advantage to make it before HG/SS because of the reason given above. But, you should remember one more thing. You are not competing with them. It is not a matter of competition. Each game is unique. (At least, I see it so)
Finally, for the levelling up, once you get lati@s, things get very easy. You might want to level-up the whole KANTO region a bit, and even add some more quests which will make the player/character eligible to train the pokemon without losing its interest.
I think Red is okay. You might only need to level up the second league challenge and all the KANTO leaders, as well as all the rematches with the gym leaders!
Even if levels rise so much, it's not a problem, because I don't think that they can surpass level 80. The orange islands should be a big challenge (like the battle frontier in Emerald)
Anothing thing that you may need to give more attention is the minor bugs that were reported in beta2. If they disappear, I am sure the game will become somewhat proffesional and original!
Good luck Link.
I hope you all the best.
I am giving feedback to you, not to let you down, but to make you stonger and comment your great work.