So I'm only level 7 and i go there to kill the A'likr guy for the girl in Whiterun. I kill all the bandits on the way with 1-2 swings of my frost enchanted axe; however, when I get the the guy I'm supposed to kill (name starts with a K) he and his guards destroy me in about 3 seconds?!?! Is my level too low to be trying this quest? I don't understand why the bandits are so easy and this guy is next to impossible...

I believe they did this on purpose so that you would have to listen to both sides of the issue before you made your choice of who to believe (if you wait before attacking him/guards, you will enter a conversation with him). If you really want to side with Saadia ( not sure of the spelling )