If I recall correctly, Achernar-v1's intention was for the Teron "newbie" area to not kick newbies out the second they hit novice, in part because Teron was such a vicious, lawless place for a newbie to get dumped in to, and in part because not having the newbie area "warded" was in keeping with the whole no-law ethos of Teron.
I've levelled a couple of new characters through there recently, by way of a passing distraction. I've also recently raised characters through the Ayamoan and Taslamaran newbie schools.
I've also watched a pretty much complete newbie to the game and Muds in general level a character in Teron. Even post Novice (and he's not got very far post-Novice, to be fair) he's frequently used the Arena as a kind of sanctuary to come back to when everything goes pearshaped in the city above. Somewhere to get food and make enough coins to get back on his feet. As it does often go pearshaped, through his inexperience. Teron is harsh.
So betweeen his experiences and mine, I like Teron's newbie area as is. Granted, it would be nice if it also enjoyed immunity from the familiarity penalties, but certainly not if that meant changing the nature of what the area is as it stands at present.
I'd leave it be, if it came to that.
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