I suppose the difference is that the 25th level mage has the option to scale bladeturn to -300 whereas the 5th level mage does not!
The penalties therefore would be different for the 25th L mage casting Bladeturn -300 compared to the 5th level mage casting Bladeturn (-50) .
But yes, you are correct.
The difference here is that the 5th level mage has a good chance of getting three or four spells that he really wants, to the level he wants.
i.e. (I don't have my books with me so the numbers would be out)
Elemental Bolt: FIRE - Scale up to medium (or Large).
Elemental Bolt: Air - Scale up to medium (or Large).
Elemental Ball: FIRE - Scale up to medium (or Large).
Elemental Ball: Air - Scale up to medium (or Large).
Mage Armour: Scaled up once or twice (but more ranks the better)
Magic Shield: again needs approx 17 ranks ( base + wall shield)
And he would be lucky to have that.
To be a truly useful player he would also need ranks in Perception, PP development, & Attunement.
Other useful skills would be Arcane Lore (Spells, UNdead lore, and probably at least a few others), Runes, Languages spoken and written, at least a couple of ranks in healing (or the spell Minor healing), Detect Magic, Dispel Magic, Counterspell. a Boost spell or two (SD and your Magic stat would be good for a quick PP boost!)
Otherwise you've got a spellcasting wombat (as opposed to a combat wombat, as we call them in Australia).
To be a usable character you need more than just weapon skills/spells and being a high level character gives you this opportunity.
I think this reflects a Low level magic users cloistered lifestyle after which they become "Journeyman"; to increase their life skills, etc.
I don't think the system needs changing or adjusting...
College of Magic (IIRC) also gives you details as to what skills are good for mages and magic using characters....