CPE level 1 is indeed very easy- it’s intended to be so. CPE level 3 is approximately equal in difficulty to novice/starter level in most other venues. If you or your dog has any experience in other venues they suggest starting at level 3, not level 1.
However, NADAC courses are far easier than CPE level 3- even elite NADAC courses require less handling than CPE level 3, so you might feel better off starting in level 1 if NADAC is your only prior experience. They don’t use the teeter in CPE level 1, and don’t use the teeter at all in NADAC, so your dog might have some difficulties there if he’s not a pro with the teeter in practice.
No, you can’t train in the ring at CPE. This means you can’t go back and put your dog in a stay again if he breaks a start-line stay (assuming you use one), and if he blows his contact you can’t put him back on the contact. Otherwise do whatever you normally would in practice- if he runs by an obstacle, yes, you can and should redirect him back to take it. They don’t call refusals in CPE, so you might even qualify if you didn’t use up too much time.
CPE is my favorite venue- I like USDAA, but there are certain aspects, like their jump heights, that I don’t like. If you take the parts of USDAA I don’t like away, you get something very similar to CPE. The games are really fun and can really test your course-planning skills and your knowledge of your dog’s strengths and weaknesses.
I wouldn’t compete if AKC were my only option. I really dislike AKC agility.
Have you checked to see if UKI or DOCNA or ASCA is active in your area? Or if you dog is small, TDAA? UKC is another option.