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Doesn't look like higher item level helps at that point (correct me if I'm wrong!). The ideal farming level is probably Master 115, since evidently that's where you start getting the best gems.
For gems 115+ (I'm uncertain if gem drops becomes more frequent at higher levels but it feels that way)
For gear/crafting you want your folks to come back with Item level 151+
At ilvl 151 you elliminate all chances for tier 8 and 9 rolls, there is no way to eliminate tier 10 and 11, so other than bragging rights there is no real benifit of farming or craft on items higher than ilvl 151.
Edit: sorry Armor caps at 161. The more you learn...
Don't thank me to early, apparantly armor caps at 161. (I was looking at weapons and trikets at the time of writing), sorry.
Still you are wery much able to roll all T-12 rolls at 110+, just that you got up to 8 tires to roll on instad of the top 3. (needless to say your odds for top rolls are way worse)
A good note is the spawning structures are actually set to your level so anything that drops from them are of lower level.