My understanding is that when Hare says rules or principles for level-1 he means it generically and is agnostic about what form they'd take. "Always be kind" is also a rule. For clarity, I'd substitute the word 'algorithm' for 'rules'/'principles'. Your level-2 algorithm is consequentialism, but then your level-1 algorithm is whatever happens to consequentially work best - be it inviolable deontological rules, character-based virtue ethics, or something else.