What if, instead of levels, we simply gained a little health from fighting?
What if we only increased magika, but bonding with skyshards throughout the game?
What if we only gained stamina from doing strenuous activity like swimming jumping and lots of running?
What if, you only gained skill advances from using them?
What if, we have starting stats like str const intell dext and each player gets a set amount of points to divide up amongst their ability. Each ability affects the speed at which you gain certain skills. Lets say you want to gain health faster, you have a higher con. You want to be a spell caster you give yourself a higher intel and gain much more magika from skyshard bonding than someone with a low intl and have stronger spell effects. Str helps you gain stamina faster and a small effect on your health gain too. Dexterity would obviously affect how fast you learn combat skills or your chance to hit with both weapon and spell, and intel would affect how fast you learn magic skills the most, and only affect how fast you learn combat skills by a little. I could get more detailed here but I think you get the idea.
You go out at the start of the game and lets say you want to be a warrior.. You take your starting weapon and go fight mudcrabs. After you kill some mudcrabs you get a message saying that you feel tougher and you look at see that your maximum health increased slightly. You also gain some skill ups in your weapon and defense. After awhile of fighting mudcrabs they become no challenge and no longer make you tougher.
You go to town and find an NPC who needs the service of an adventurer. You take the job, and run to the cave of bandits to retrieve the stolen goods. While running and jumping there you get a message that you have become more phyisically fit and look and see that your stamina has increased.
On your way to the cave you spot a shiny glowing rock up high on a cliff. You climb up there and find a skyshard, you bond with it and gain a little more max magika
You want to be a warrior with high health? You gain it by getting injured. In this way, a mage would not be as tough as a warrior because mages wont get hit as much, unless they take the time and have a high con a mage could never be a tough as a warrior. having a high con means sacrificing intl and dex
Basically, this would give us an entirely skill and exploration advancement system where questing mainly rewards you with gear and gold and reputation and actual adventuring gains you power. I could go into much further detail if the devs entertained my idea.
This kind of system would be much better than a leveling system. And from what i have seen in ESO so far, leveling doesnt really have much point to it other than a number that everyone can see representing how far you have progressed in the game. I personally would rather not have enemies in pvp be able to just look at me and see what my lvl is.