Yikes! OK so basically you're saying that once we have about enough infamy to cover any upcoming enhancements going red we should go back into SG mode (until we level more, and more are going to go red)...?

Yes. Based on what I did last night, 1-2 levels should give a character enough infamy to buy whatever they need. I think I bought 6 or 7 of the "power 10" with infamy gained by my short time online last night. And I think i made 2-3 dots, so that would end up being 21-24 of the large ones. For 2 levels that should work out to most of what a growing villain needs.
Mostly, my enhancements are sitting around the same level, so I usually only have 1-3 that go red on "off" levels (not 2,3,7 or

.