The concept of levels in RPGs primarily arose from the table-top pencil and paper versions like Dungeons and Dragons as a way to reduce book-keeping. The actual meaning of levels is rather ludicrous, but they eventually became a motivating force for players of those games as a way to measure their progress, and often to boast.
In a computer-based RPG, there is absolutely no need for this type of book-keeping convention. The computer can easily track minute details across all manner of character actions & statistics. As a result, levels could be (and IMHO should be) abolished entirely. A game using a skill-based advancement system (which tracks all these minute character details) is much more dynamic and offers a greater range of customization and choice for the player.
Unfortunately, decades of games featuring levels have in-grained player's thinking that levels are the be-all, end-all of RPGs, and it is very difficult to explain to them that levels are actually an archaic and unnecessary way to track character advancement. In addition, the term "skill-based" is often confused with playing skill, which is mostly unrelated to a skills-based advancement system in an RPG. Even the original summary seems to show this confusion.
I'd like to see more RPGs that ditch levels entirely, and switch to a skill-based advancement. It's time to move past the outdated level-up...ding!