High-level dual-classes generally produce the most powerful characters for the, say, 7.5M - 8.0M XP range (and hence the most powerful end-of-game character), but I prefer limiting my dual-classes to be able to be fully functional in both classes for over half of the 89K - 8.0M range. That precludes getting two sets of HLA's (since HLA's for all classes begin at 3.0M XP), but I can live with that.
Planning such a high-level dual-class certainly does eliminate the "diminishing returns on high-level characters" problem, though... when you do regain your 20+ level 1st character, the jump in power at that point is pretty obscene.
Dual-classes definitely get incredible advantages over multiclasses in the proficiency realm.
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