So when in level up should i be saying yes! i get to pick a new perk and increase my health/stamina/magika or should i be saying no! now the game is just gonna get more difficult

Yes.

Leveling isn't good or bad; it just is. The game isn't so imbalanced that you can't level.

leveling from mostly combat skills = great!

leveling exclusively from speech, crafting, pickpocket, security = not so great

more difficult? i think this game is way too easy. i'm not saying i hate it. i really really enjoy the game and i'm glad i bought it, but in no way shape or form is it difficult. i got so bored i actually cranked the "difficulty" up to max and keep in mind my character is a heavy armor orc warrior and about 70-30 or atleast 65-35 in Health - Stamina. no perks in anything other than heavy armor, smithing, one handed, 1 point in resto and 1 or 2 in sneak. I got 1-2 shotted by ice spike or those explosive fireballs and 2-3 shotted even with beserk on. i dont feel like carrying and micro managing resistance potions and to me, thats not hard its just dumb keep in mind that melee combat is still nothing and i have no probs from that only spells. melee combat even on the high setting is still a joke imo. so i'm back to normal or hard now. I wish they would take some notes from dark/demons souls, and why add health regen? i'm not a "vet" of this series, oblivion was my first elder scrolls but still.....lol.

that said. i jump on the opportunity to level up. If it happens to be a while before i plan to go to a town i will sit on it and power level heavy armor or something till i am near dead and out of my 100 magic with healing and then refill it from leveling. i am sitting on 3-4 perk points unused tho.

Well, it's kind of bad for a mage since his spells do not scale and enemies do thus for example:

Your Dead Thrall, a 100 conju spell, can resurrect a given enemy at your lvl 40, it won't be able to resurrect it when you reach lvl 50 and so on ;/

Was pretty disappointed when I annually came for Astrid to my basemant to get her to do some dungeons and a message popped that she is too powerful to resurrect, same with thalmor mages.

If you're worried about Oblivion style level-scaling, it's still there but it's much nicer about it than Oblivion. Even in the higher levels you'll still face bandits and they'll still be wearing fur and hide armor. The undead overlords with shouts will pop up in dungeons when you reach high levels, but the regular mooks will still be there to serve as cannon fodder. You'll appreciate leveling up when you're able to take on two sabretooth cats and a snow bear by yourself whereas five levels ago you would have been fleeing for your life.

Leveling is what it is...... inevitable.

Is Leveling good or bad?
-> Yes


Logic bomb.

I'm guessing you've never played an RPG, let alone an Elder Scrolls game. If the game gets too hard, crank down the difficulty. If it gets too easy (which was my problem), crank the difficulty up a notch or two. It wouldn't make sense to not level up when you can. If you don't you'll be sitting at what ever level you are, you won't have access to all the great perks and you'll miss out on quests that can only be activated at higher levels.Just click "Yes", upgrade either Magicka, Health or Stamina, pick a perk or save it and move on.

I like it. It is better than Oblivions.