When I was still at my old rink, I was a low level instructor. I'd been skating since I was 10, so my basics were very competent, but I had only just begun testing. Skating skills wise, the average rink goer thinks I'm advanced, though I don't feel I am (working on pre-juv and juv moves and spent a lot of time perfecting everything underneath so I look like I know what I am doing haha).
I was approached to teach LTS at that rink, and jumped at the opportunity. I taught Snowplow Sam groups and occasionally would fill in for my coach with the adults. Before I moved for a job, I was getting credentials and such so that I could teach 15 minute private lessons to the littles (the skating director asked me to because he wanted to have essentially a babysitter available for the parents who wanted their tots to practice more rather than just skate in circles aimlessly after class or have them get some extra help if they're having trouble with an element). Unfortunately, got all my credentials and I moved. So I never got to do that and my current rink wasn't hiring any coaches at the time.
Eventually my plan is to get back into coaching when I eventually move up north (looking like it's going to happen at the end of next year, Chicago-area), and I want to get my MITF to at least Novice before I start teaching again. I don't want to teach jumps if I can avoid it, and am happy to teach basic beginners and ice dance patterns and be specialized in MITF. I love the technical aspect of it, and adults friends love that I'm aware of all the technical things.
Basically, yes, there is totally a place for low level coaches. Even more so if you began as an adult because other adult beginners can relate to you. And there are a lot of the higher level coaches that really don't want to be teaching the snowplow classes because they'd rather focus on the higher level LTS kids.