According to the literature, level 1 is intended to keep items cold that were already cold (refrigerator temp) when you added them. Level 2 is intended to cool items that weren't previously cold, as it'll actually drop the temp below refrig temp for a period of time to help get them down to refrig temp as quickly as reasonably possible, then hold them there.
I have only used it a handful of times, on long trips, but it has always worked as expected (see above).
I have a microfibre cloth, folded in half twice, that just fits the square, which I place on top of the contents to help insulate, and that seems to help a great deal speed up the process.