Grifter's page

According to the FAQ

Crafting and Bypassing Requirements: What crafting requirements can you bypass by adding +5 to the DC of your Spellcraft check?

As presented on page 549 of the Core Rulebook, there are no limitations other than (1) you have to have the item creation feat, and (2) you cannot create potions, spell-trigger, or spell-completion magic items without meeting their spell prerequisites. So racial requirements, specific spell requirements, math requirements (such as "caster level must be at least three times the enhancement bonus"), and so on, are all subject to the +5 DC rule.

—Pathfinder Design Team, 02/21/13

So yes, you can craft a +5 weapon at level 5 if you have the money, time, and can make the skill check.

I appreciate, group has been limiting itself for some time.

I have encountered this problem from time to time over the years. Typically the player is new to gaming looking only at numbers on a page and not intangibles in the game. Generally I have a strong roleplaying incentive in game not to die. Like your character has been recognized and has stature in a town. He is a hero and that comes with inherent bonuses that a fresh PC has not earned. This typically leads the PC's to want to remain with characters because they grow attached.

But when it happens, or when a player just does not like his character at all, I typically let them rebuild but make sure that they are not over optimized with feats (Ex. Skill Focus was great at low level but now that my character is level 10 will a +25 I'll skip that and just take all power chain feats)and they are never allowed to spend more than 50% of there loot on any one item which typically ends up being there main weapon.

Lastly my players know that if I suspect someone is doing this or any time people start acting stupid for any reason other than getting very tired I punish them. I always reward well made plans and always punish blatant stupidity. Game I'm running now the group went into a spider infested dungeon thinking they were all cool with there shiny +1 swords and neglected to consider other gear (antitoxins and extra potions) and 2 of 5 didn't make it out.

Play Warhammer some time and PF will look like the poor mans hobby.

Most of the classes can be overbearingly powerful at high levels it just depends on what you want. If you want min/maxed characters with feat trees specifically tailored to make you uber god like your characters can border on insane. My group and myself started early in 2nd edition and I have found that we like really unique and cool characters more than super characters.

So to answer your question the 1-2nd edition wizard was overpowered at high levels but I always felt that was your reward for surviving the low levels... remember 1d4+2 max HP... ouch. So yes wizard is powerful in PF also but no more powerful than he was before.