So in short without the fix, the player's units become seriously overpowered, and the monster's defense at higher levels removes the viability of magic. (Sounds like the formula all the old nes and snes final fantasy games used, with the exception of the "flare and ultima" spells avoiding enemy magic defense, so you could at least used them tactically ... ... ... ... I believe even though that was the case, they had some serious balancing issues).
The Original Super Mario RPG for snes, had a level cap of 30 ... there's wasn't much grinding or anything needed or strategy for that matter. I suppose 50 Levels is a plus by those standards.
(Still rather have the option for 99 Level Max, or the resurrection items back or a appropriate substitute like weapon modifiers, or more of them)
I spent about 30 hours in the first game, on the gba before it got bland, about 10 hours in this one before it go bland. So the mod is a big improvement over the original for starters!