With 1.2 changing so much, should I delete my current character and start over? I'm currently level 32 and fairly under-leveled for my current quest, I kinda want to start over and take my time rather than running through like I first did.

edit: if I delete my current character can I name my new character the same name as before?

i think as long as you create the new character before someone else takes the name you can reuse the name. not 100% on that tho.

it shouldn't take you too long to get back where you are

Yes you can keep the name.