This is exactly what I’m doing.
I’ve reset twice now. The first time through I was all about the levelling, so I would reorder vocab last. I started pretty diligently but after level 20 things started to get hairy and I was a few levels behind in vocab. It was also pretty depressing to see so many lessons in the queue.
This time (and last time), I’m making sure I do all vocab on the lower level, before even attempting any radicals or kanji on the new level. It takes some self-restraint because I love learning new radicals (and they’re often the easiest). It means I level a bit slower, as I take a few days to get through the vocab, but I’ve found it gives me some space to breathe and it’s so nice having no lessons or reviews every now and then. I feel like I might actually have time to finally dust off Genki now and finally get up to speed on grammar.
I hated vocab the first time through. After a while I realised how much easier it was to remember readings if you know a few words that use the kanji. When they did the radical (and audio!) overhaul I figured it was a good time to reset again. This time, I’ve got a real focus on pronunciation and pitch accent, so vocab is now fun. I have an extra level of things to remember (do I remember the pitch accent pattern and can I pronounce the word correctly).
I don’t think it really matters how you study - as long as that method is sustainable. It’s when things get too overwhelming (too many reviews) that you start to slack off and before you know it it’s been months and you’ve lost motivation. I honestly don’t care about the levels any more, only that I’m improving and that I’m sticking with it. If I have to go a bit slower to do that, then that’s fine.