No. That doesn't solve the issue I pointed out at all: compatibility. If a modder created a level up that increased stats but only used the MG format, then it's still incompatible. Ideally, only the parts that actually differ should be changed. In this case, you want particles, just use the particles tag in the level tag. So for the example on that:
<levels>
<level name="level_name" kills="5" default="false">
<!-- Both engines -->
<static-modifiers>
<max-hp value="0" />
<max-ep value="0" />
<hp-regeneration value="0" />
<ep-regeneration value="0" />
<sight value="0" />
<armor value="0" />
<attack-strength value="0" />
<attack-range value="0" />
<move-speed value="0" />
<attack-speed value="0" />
<production-speed value="0" />
<repair-speed value="0" />
<harvest-speed value="0" />
</static-modifiers>
<multipliers>
<max-hp value="1" />
<max-ep value="1" />
<hp-regeneration value="1" />
<ep-regeneration value="1" />
<sight value="1" />
<armor value="1" />
<attack-strength value="1" />
<attack-range value="1" />
<move-speed value="1" />
<attack-speed value="1" />
<production-speed value="1" />
<repair-speed value="1" />
<harvest-speed value="1" />
</multipliers>
<!-- MegaGlest only -->
<particles value="true">
<particle-file path="particles.xml" />
</particles>
<!--
If specified, radius will mean all units within this radius of the
leveling unit will be also be given the stat boost. If not specified or
set to zero,
-->
<radius value="3" />
<!--
If radius is not zero, a target must be set, stating which units can
be affected by the level up boost. So if set to ally, allies within
the radius will recieve a level up boost.
-->
<target value="ally" />
<!--
Giving all these units within the radius a boost in stats
could be extremely overpowered if permanent, so a time limit
would be necessary for such a feature to be of use. Measured
in seconds, if set to zero, the boost is permanent.
-->
<time value="10" />
<!--
Likewise, boosts could be overpowered if they stacked, especially with
large boosts, which could be a gamebreaker. If false, a unit can only
have one boost at a time.
-->
<allow-multiple-boosts value="false" />
</level>
</level>
The difference with this is the removal of MegaGlest only stat modifier tags, as they are useless when the static and modifier boosts do the exact same thing, but won't cause engine incompatibility. You could still add particles with the particle tag, which would presumably apply the particles permanently to that unit, in the same syntax as all the skills use particles.
Personally, I'm not entirely sure of the use of letting other units receive boosts on one unit leveling up (especially since that could be very overpowering: letting every unit in a group get +50% HP and EP, for example, just because one of the units got a level up), but if it were to be used, there'd likely have to be some way to set a time limit, as we'll presume we won't permanently increase the stats all these units that didn't even actually level up themselves (while still allowing a permanent boost by setting the timer to zero).
Personally, I'd say just implement the static modifiers and multipliers tags, and possibly the particles, but the concept of giving boosts to nearby units upon leveling seems like a lot of work for a feature that could end up being a game breaker.