> They're going to be annoying. But not catastrophic.
I think there is a misunderstanding about the whole term. If it is not a big problem, then it does not meet the definition. So there must be some threshold where they aren't problem. What is that threshold? Because certainly there isn't space for infinite amount of objects. Primary question is that whether that threshold matters on practice. If it is 70k, then it is certainly a problem, but who knows the exact number yet.
> Highest level?
There is always the one which is classified orbiting on the highest level in LEO. Also that object can get destroyed; which means it will start deorbiting and with a chance to hit some other object below.