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The Daily Grind: Should beta testers be allowed to keep their characters?

This is a pretty loaded issue, as it turns out. Obviously, the benefits to keeping your characters are manifold -- you start the live version of the game at a higher level than the rest; you likely have vastly better gear; you've already been through most of the lower-level quests, so can concentrate on the more lucrative epic lines, or just work on your PvP skills. But aside from the fact that you might find that this diminishes your enjoyment of the game, having already seen so much of it, is it fair to the new players?

It's somewhat demoralizing to log in for the first time and immediately see high-level players goofing around, talking trash, and trading or selling the epic loot they have in abundance. It destroys the feeling that you're entering a strange, exciting new world, and reminds you that you're just playing a game, and people have already well-trod the ground you've never even seen. MMOs shouldn't be about racing to get to higher levels, but in a beta, it's easy to exploit early class imbalances to advance. In this case, the goal and the journey have become muddled, and for many, the traveling is just as important as the arrival.

Some games do wipe their player bases when they're ready to release. Is this frustrating, or is it a good practice?