Grim1: Well no fucking shit! You figured out the code! Congratulations. The only mental block is the one in your ability of comprehension. Of course gear is another way of saying level. Of course gear grind is just another form of character progression. No. Fucking. Shit. All these games whether it's Lineage, EQ, WOW, or UO; have activities that promote character progression.
The fun comes from how you do it. I think the less time you spend filling up bars the better.
The thing is, by channeling all progression into items, like WoW has essentially done, you end up with a pretty linear and fairly boring system. That's because, due to how progression is handled, you HAVE to give gear out at a consistent rate. This has serious ramifications on things like the economy, gear acquisition rates and a host of other issues.
We talk (And you do to, even) a lot about games being broad and deep. By having multiple methods of power advancement functioning in your game, it allows you to play with each component as a variable off another. A minor example of this is something like LoL--at different stages of the game, depending on your characters level, different items will become more, or less, valuable. Now, this isn't really that pronounced in LoL/DoTA (I used it because it's a popular game and it's done pretty subtly there), but in a game actually designed around this system, you could make it so an item that's great for a level 15--might not fit in a level 50's gear load out...And yet, both the level 15 and 50's character would essentially be the same power, but the level 50 would have more depth, ALA Eve. And yes, I'm not kidding myself, this DOES translate to more power. BUT the critical difference is it's a "soft" kind of power, that doesn't limit grouping--unlike WoW's level system, where max level-1=garbage.
Now what does a system where power is broad and multi-faceted accomplish? Well, for one it stirs the economy by allowing for a deeper economy. For example, it encourages old items to be sold--and more importantly, gives a REASON for more experienced players to go farm old items, and return to dungeons they might not need anything from.. This creates situations where more experienced players, have reasons to associate with less experienced ones (And hopefully form lasting bonds.) Right now, in most games, everyone is on a linear path to acquire more gear. Even if BoE/BoP were abolished though, there would be no market for old items because the treadmill for getting new items is so defined, that old markets collapse very quickly. Experience players go back to grind badges, sure. But as soon as they are prepped for THEIR content, there is no reason to continue, certainly not a reason to form outside networks with long term thought toward exploiting items for profit. (Which is what prompted a lot networking in older games)
I just don't know why anyone would want to limit themselves, in terms of design, to ONE source of character improvement. Part of what makes DoTA/Lol and RPG's so addicting is multiple sources of character power, all intertwining and creating different outcome. (Look at D3--it became a better and better game as they opened up more possibilities.) People like to experiment. Change stimulates them, as long as it's not too radical. Why would you make it so everything is about gear? That seems silly.
And don't get me wrong. I hear you about level grinds. I think having a base leveling system just to get into the game is
stupid. If it were up to me, a level "1" and a level "90" should be able to group together the same way a guy in greens and a guy in purples can. Levels should be LIKE gear, you're right. BUT you shouldn't funnel all progression into gear...By doing that you reduce the number of variables and combinations your game can offer, and you make it far more linear. You essentially cultivate a lot of the problems WoW has right now.
The only reason I see developers shying away is due to not being able to reset levels for new content. But really, if you do the bonuses right, you can just keep expanding. Will it eventually reach a point where it's a mess? Yeah. But that happens in linear gear gaems, too--ala WoW's big "squish" coming up.