Edit this line is about your comment about it not updating the underlying values -- Are you sure? I've just checked and that's not the case.
What you would need to do is remove the existing values from level 2,3,and 4 if level 1 changes, and similarly 3 and 4 if 2 changes etc. as they wouldn't be valid any longer.
Your level2Q etc are correct but you don't need the bring in the table above at all. In fact this is where you have a problem, you have created two forms for existing and new records. You don't need to and then wouldn't need two sets of queries. Open the form with no data showing and have command buttons to search existing records or add new records and only maintain the one form.
Personally I don't save queries I use as sources for combo's unless they are really complex (which is really rare) I build and save them in the controls on the form. That way if I forget and alter the saved query without realising, I don't break my form.
I would be tempted to reverse you naming convention as well put the q t f r etc (in lower case) at the beginning of your object names that way you know what you are referring to at the start of the name, you don't need to scroll to the end to fin out. That's just personal taste though.