In short, no you should not upgrade your Town Hall past level 4 before your protection time is up.
It’s better to be safe than sorry. I know I would much rather come out dangerous than become a resource farm where my neighbors just mooch off my hard work and steal my resources.
The main reason you should not do this is because all the people who started before you and already let their 7 day protection run, have several days advantage over you. With those few days, they were able to build up an army to wipe you clean. In theory, if you waited the 7 days, you should come out about even and they will not risk trying to fight you.
Moving on, there is one secret situation in which you should upgrade your Town Hall past level 4 before your 7 day protection is up. I’m going to share it with you.
When a server is first released, usually the people who join the server within a few hours have an advantage because they know if they go out of the protection, there is nobody with 250k+ prestige ready to pounce on them. Not only do they have no fear of attack, they get more resource fields because each Town Hall upgrade adds 3 more spaces. Within a day or two, these people have a huge advantage and will be the first one with a large army because of the higher resource production. The chain continues, and they are a powerhouse.
So, the only time I would ever recommend going out of protection before the 7 days expires, is only if you join the server within a day of its being released.