I would love to get on and play with you sometime, although it'll probably be mid-june when school gets out.
To address some things from my viewpoint:
1. 1/8 of your current EXP is taken away... I think. It's not that much, and it depends on how you're farming.
2. The green coconutter and tutankoopa are the only bosses who don't have music in their room
3. Gloomba berries are a good healing item. I believe you can also find a cooking shop to get better healing items before even completing the first section (Koopa Islands), although it's quite a trek from Mushroom Town.
4. Defense is really good if you can build up a lot of it really fast, and probably 50%+ of any character's defense will come from equips. If I had my level 75 give me the level 60 armor from the last area, then it'd make the game way too easy.
5. Defense is your new best friend.
6. From what I recall with conversations long ago with Kimi and some other people, SMBO is exploration-based so that would kind of take the point away. There's also a sewer system a bit later in the game allowing you to navigate around much quicker.
Also, for very efficient farming, check out the "Kiting and Camping" videos in this thread:
http://www.smf4free.com/forums/supermariobrosonline/index.php/topic,1284.0.htmlIt essentially allows you to kill gloombas at low levels such as level 3-4 if you can abuse some nice farming spots. It also teaches you how to defeat the coconutter while taking barely any hits. The video is actually extremely helpful because the gimmick it teaches you applies to pretty much every enemy in the game given you know the right spots to farm at.