Hi
Yep, maybe a little too suspicious, but from my experiences at home with boilers and installations etc, what the OP is describing is a little alarming. For instance, my aunty has a gas powered combi boiler, and although you do have to turn the taps on a little 'more' to get the boiler to kick in, it's never been that the taps have to be fully open - that to me suggests pressure issues.
Having no thermostat in a domestic environment suggest corner cutting when the system was installed. Using a 'heat level' control on the boiler (which isnt really a thermostat thats used for room temperature control) is a very rudimentary control system. Usually on combi boilers, it controls how much heat energy will be transferred to the radiators, so using that to control room temperatures is very innacurate.
Again I'm not an expert, but the above is why I'm skeptical the OP's situation is 'correct' as such, maybe it really is a normal or known way of doing things - I just havent come across it or heard of it before, and I've spoken to ALOT of tradespeople as well as friends who are in the industry too.
cheers! DtM! West London & Slough UK!