Guild Wars 2

I find myself pondering the workings of the ‘dynamic level adjustment’ feature. I read the wiki (http://wiki.guildwars2.com/wiki/Dynamic_level_adjustment) but it doesn’t go far enough to help me understand what the impact of gear is.

Suppose a naked level 80 character enters a level 30 dungeon. My understanding is that character has their stats reduced automatically to level 30 equivalent, as if they had just hit that level. Suppose now that the naked level 80 has a +X Power item on, where X is a value that may be considered ‘max’ for level 80, and re-enters the same level 30 dungeon. This character should now have +Y Power, where Y is a value that is considered ‘max’ for level 30. Is that right?

A naked 80 character will be helpless, and basically the same as a naked lvl 30 character.