The Dimwitted Dwarf inn (with level 10 characters) showed up at a point when I only had level 8 characters in my party. It's dismaying that the efficient thing to do would be to abandon all of the characters I've advanced from 1st level and recruit new 10th level characters. I would suggest that the level 10 inn not show up until the player has a party of three characters, all level 10+.
I'm more for at least one lvl 10 character and have a gold cost on recruiting higher lvl characters but too each his own.