Chief:
For VFR-on-top, ATC doesn't have to specify any level in approving this procedure.
A level would only be specified if ATC considers a level restriction is appropriate.
"maintain VFR-on-top" clears the pilot to operate at any VFR level in Classs E airspace in VMC.
VFR climb and descent:
I agree this scenario does tighten the sphincter, but how is it any different if the 2 aircraft are in class G today, and the Centurion driver wants climb?
Blue skies, you'll need 'em