Just my two cents worth...
I think that the pilot is the only one that can make the decision on this question. You need to consider what it is that YOU want out of the sport of CLPA.
Competing against a higher level of flier will do one of two things to you:
1. If you take the challenge, observe what they do, ask questions and use all this to your advantage then flying with advanced fliers will help you to be a better flier.
2. If you take the challenge but don't do well and let it get you discouraged, then competing loses it's attraction and in a worse case scenario you quit flying CLPA.
There is also the consideration of judges (especially at local levels). New judges are frequently assigned to the Intermediate circle. This is not to say that you are getting a poorer judge, just that you are getting a less experianced judge. Until that judge receives training, and/or has the opportunity to judge advanced or expert fliers she or he is limited in their frame of reference.
As a flier I decided to move to advanced to provide myself with a challenge and to gain the more experienced judges. I am a bottom feeder right now, always within sight of the bottom, but I am getting better. Not only am I getting better in my flying, but also in my building. I don't really care about trophies since I got enough of them in a former life. I care mostly about having fun, enjoying the company of friends, and whenever possible learning and improving.
In the end it is your decision. Do not let anyone pressure you into advancing prematurely, however consider it a sign of respect when someone pushes for you to advance. For the most part that means that they believe that you are flying on a level commensurate with the next higher PAMPA class.
Fly lots, have fun, take home as many airplanes as you brung..
Ed