The items will drop at the level of the character they drop for. But stat rolls are still in a random range, so one level 70 set piece can be significantly better than another. They can also roll different stats to begin with.
So really, that specific question is kind of silly. It doesn't matter. Two level 70 characters will get drops from the same pool, but one can still get a better roll. Like at this point on my Crusader, I'm playing for better rolls on the gear I already have.
Paragon level doesn't change the gear drops then? Just regular level?
So run a seasonal Barbarian to get the goods at Level 70 that I can then give to my regular main Barbarian after the season ends in about a month. Correct?