I will start by saying that I am arguing almost entirely from the perspective of multiplayer games, not single-player games.
While leveling up in single player games does sometimes present some problem with balance, it does not usually end up being a problem because nobody really cares as much if a fight against NPCs is unbalanced. If it is in our favor - we enjoy being powerful, and if it is not in our favor - we enjoy the challenge of fighting something that is hard to defeat. Generally speaking.
The situation is quite different in online games though, and let's be clear, when I say online games I mostly mean MMOs. Leveling up serves two main purposes, as far as I can see.
First, it teaches people how to play. If you started somebody off with 10 skills they would have no idea how to use them. It makes much more sense to start them off with only 1 or 2 skills, and build up their arsenal over time so that they can learn to use it.
Second, it makes people play for a certain amount of time, forces them to grind and level before they experience the end-game content such as dungeons and PVP.
So here are the problems.
While it is useful to teach new players how to use their character, it does not need to be so long. Leveling up a character to max level might take days or weeks, depending on the game and how often you play. That is an incredibly long time for what is, basically, a tutorial. Not only is it possible to teach people at a much faster pace than that, but one also needs to consider that a huge chunk of the playerbase for online games are already veterans.
So as far as using the mechanic of Leveling to teach people HOW to play, I think there is good evidence it is an outdated method of teaching.
So moving on past teaching, there is the use of leveling as a grinding mechanic. It keeps people playing longer. If you have to spend at least a week leveling up before you can experience the real content, you will be on longer and theoretically be more profitable. This probably made more sense at a time when all online games were subscription based, but after innumerable failures the market has shifted toward the free-to-play model.
On top of that, grinding actually drives some people AWAY from playing games. Perhaps this is a personal gripe, but I know there are many who agree with me. After a certain point one gets tired of having to level up a new character yet again when all you really want to do is just jump in and play the game. One might argue that leveling up is part of the game, and to an extent that is true, but it brings me to the next point.
The majority of an online game is tailored for max-level play. The PVP, the dungeons, and gear, etc. There might be some interesting quests, zones and dungeons in the early stages, but most of the content is not able to be experienced until max level is reached. Imagine if you were required to run around Skyrim farming bandits before you were allowed to enter the coolest dungeons, or finish the main questline? (Yes, it is technically much HARDER to do some things without leveling up, but it is not impossible and not disallowed)
The prerequisite of leveling up is, in essence, a time-waster. The end-game content is not going to be easier because you are max level, it was specifically designed assuming you ARE max level. It is designed to EXCLUDE you until you reach max level. Consider the Dungeons and Raids in WoW, which have a difficulty progression that has nothing to do with your character level, but you still have to reach max level before you are allowed to participate in those things.
It is not an achievement of any sort, it is not as if only the best players reach max level. Everyone reaches max level, it is the norm, it is expected. Since we are all going to be max level in the end anyway, why are we required to jump through the hoop of leveling up before being allowed to participate in the content of the game?
I have other gripes, but I think going in to those would be entering into a large tangent that takes away from the main point of this thread.
While leveling up in single player games does sometimes present some problem with balance, it does not usually end up being a problem because nobody really cares as much if a fight against NPCs is unbalanced. If it is in our favor - we enjoy being powerful, and if it is not in our favor - we enjoy the challenge of fighting something that is hard to defeat. Generally speaking.
The situation is quite different in online games though, and let's be clear, when I say online games I mostly mean MMOs. Leveling up serves two main purposes, as far as I can see.
First, it teaches people how to play. If you started somebody off with 10 skills they would have no idea how to use them. It makes much more sense to start them off with only 1 or 2 skills, and build up their arsenal over time so that they can learn to use it.
Second, it makes people play for a certain amount of time, forces them to grind and level before they experience the end-game content such as dungeons and PVP.
So here are the problems.
While it is useful to teach new players how to use their character, it does not need to be so long. Leveling up a character to max level might take days or weeks, depending on the game and how often you play. That is an incredibly long time for what is, basically, a tutorial. Not only is it possible to teach people at a much faster pace than that, but one also needs to consider that a huge chunk of the playerbase for online games are already veterans.
So as far as using the mechanic of Leveling to teach people HOW to play, I think there is good evidence it is an outdated method of teaching.
So moving on past teaching, there is the use of leveling as a grinding mechanic. It keeps people playing longer. If you have to spend at least a week leveling up before you can experience the real content, you will be on longer and theoretically be more profitable. This probably made more sense at a time when all online games were subscription based, but after innumerable failures the market has shifted toward the free-to-play model.
On top of that, grinding actually drives some people AWAY from playing games. Perhaps this is a personal gripe, but I know there are many who agree with me. After a certain point one gets tired of having to level up a new character yet again when all you really want to do is just jump in and play the game. One might argue that leveling up is part of the game, and to an extent that is true, but it brings me to the next point.
The majority of an online game is tailored for max-level play. The PVP, the dungeons, and gear, etc. There might be some interesting quests, zones and dungeons in the early stages, but most of the content is not able to be experienced until max level is reached. Imagine if you were required to run around Skyrim farming bandits before you were allowed to enter the coolest dungeons, or finish the main questline? (Yes, it is technically much HARDER to do some things without leveling up, but it is not impossible and not disallowed)
The prerequisite of leveling up is, in essence, a time-waster. The end-game content is not going to be easier because you are max level, it was specifically designed assuming you ARE max level. It is designed to EXCLUDE you until you reach max level. Consider the Dungeons and Raids in WoW, which have a difficulty progression that has nothing to do with your character level, but you still have to reach max level before you are allowed to participate in those things.
It is not an achievement of any sort, it is not as if only the best players reach max level. Everyone reaches max level, it is the norm, it is expected. Since we are all going to be max level in the end anyway, why are we required to jump through the hoop of leveling up before being allowed to participate in the content of the game?
I have other gripes, but I think going in to those would be entering into a large tangent that takes away from the main point of this thread.