Gear in the end-game(late Act 2 and Act 3) is also busted but you dont see it that much because of not gaining so many levels as in early Act 2. I do believe that Fort Joy is the most balanced part of the game, rest need a good from the developers.
Even Fort Joy is rather fucked up. It just is more lenient, but you'll see the guides about the strict order you need to follow to get enough experience to have the levels required so as not to get slaughtered in fights, and how you need to cheese the game for money and gear.
The entire game is twisted by this idiotic power growth.