The amount of levels is something that relates to map design and is something that the author must decide. But there is some inherent power here (gameplay wise) and a possible new feature that the current JASS functions doesn't grant you directly (maybe we get new Cast Range modifiers/Hotkeys/ but that's not what we got right now). Channel ability has less intrinsic limitations (on average) than ie. Roar. Yes, Channel interrupts the previous action, but Roar is entirely hardcoded to be an Instant ability.
Another possible approach would be choosing different iconic skill types (this is game design), and doing the same that i said with the Channel ability but with different and iconic dummy Skills: ie. For your classic single target skill you use a dummy Chain Lightning with lots of levels, for your AoE skill you use a dummy Silence with lots of levels, for Instants you could use a dummy Roar. Then you simply add those abilities, hide them at the start (the new native comes in handy) create the infrastructure (here, to achieve the dinamic hotkeys you will need to, in general, create as much of skill types as slots, then maybe link them on a Table fashion "SKILL[integerSkillType][integerSkillSlot]") and then unhide them and modify them (with the tooltips/cooldowns/mana costs natives) as you need them to.
But here you're convoluting the infrastructure even more, and let me say innecessarily.
But the neat thing about the Channel system like is to switch hotkeys dinamically specially, among other things (additional control over a complete skill slot). But specially those hotkeys. And also the targeting types. Maybe you also want to feature dinamic cast ranges, different AoE's, or dinamic cast times, and depending on the precision you are aiming then maybe you need to explode the Channel ability with levels just like you said, but on my perspective i would do something different (more cast ranges and less aoes, but in the end the levels round the 200~ too should i want some precise cast ranges).
It is known that the loading time greatly resents abilities/upgrades with lots of levels, but i don't know if there is a treshold or something, like ie. having 20~ skills with 100 levels v/s having 4 skills with 500 levels. So this is the basic cost of this system basically (again, gameplay wise): an increased loading time. This could be huge, but i don't know the hard data here.
For heroes one could use Engineering Upgrade (just adding it to the hero) and more Channel abilities (but this time with less levels), ie. the first 4 Channel abilities comprehend cast ranges from 100-2000 for their respective slots, then by adding a custom Engineering Upgrade of a certain level you could access the next cast ranges, or maybe a certain Engineering Upgrade unlocks the AoE's, etc. But again, here i'm trading levels for more abilities.
Edit: Edit: Oh no I forgot single target spells also need allowed Targets. That will explode the level amount even more.
Just like casting time could be resolved with the trick you mentioned, the targeting filter can also be resolved with an ON_SPELL_CHANNEL trigger and some custom SimError function.