How do YOU spend your RAF level grants?

[tldr]

Are you referring to 'boosting' or 'tagging'? If you're boosting a team through instances, then you should be getting multiple levels per hour regardless of how high of a level your booster is. If you have an efficient route for boosting through instances, then you can have a new character at level 80 in about 12-14 hours /played.

I probably don't understand the difference. If there's a significant level difference between the leader and follower(s), the lower level toons aren't going to get much, if any, XP. You can still complete quests for full XP, but that only happens once (for most quests, at least). I tried doing this with an 85 hunter and the 43-ish mage, and it seemed like it was more trouble than it was worth. Of course I was also trying to do RFK which is a complete PITA to get to now.

Surely you weren't uncertain that handing out free levels to a low level character in a high traffic area would cause a stir?

Had I really given it any thought before-hand, I would have guessed it would cause a stir, yeah. :-)