My reincarnated character hit 11 the other day and the extra XP has become really noticeable. I have always debated on reincarnating him again but for the fact that a 36 point build doesn't really help a Barbarian much I don't really have that much motivation.
So what I suggest is once you hit 20 on your second life your account is upgraded to "Hero Status" and you have the option of making your new characters 34 point builds with the extra 5% XP penalty. Same thing if and when you hit 20 on your third life it should unlock 36 point builds with the extra 10% XP requirement. Of course you should still be able to make 32 point builds with no increased XP penalty.