Let's not twist words to fit your own argument. They just told streamers not to do that, which is only 1-2 demo stations out of all the ones they had. If they didn't want anyone to do that they wouldn't have the button in the first place. It is very little effort for them to disable or remove that level 1 button.
Sooo yeah.. it was 100% intended for people to make level 1s.
I think everyone agrees with that. Nobody claimed they'll be available right when 7.3.5 launches I think (unless pre purchase goes up before release), just when pre purchase goes up which could be anywhere from now until a few months before pre-patch.