I'm sorry. I did read several posts but apparently missed the important bits. I know how annoying that is, and it's only my fault for not reading carefully enough. In fact, it's always good to have a system that works well in any case, and I'd want the system to be designed in a manner that works best and is most believable. Although I do think that spreadsheets and calculations are applying out-of-character knowledge to influence in-character actions, which is something I'd not like the game to expect me to do; the games balance is hard to achieve this way.
Let me try to explain: For someone who power-levels his/her character, the game will quickly become too easy if it's balanced around a system that expects the player not to do it, and vice versa; the game would be needlessly hard for people who do not wish to level in this way, if it was balanced around that. My first post was a poor attempt to point out this issue in the form of a disagreement between player types. Difficulty modes are only a solution if well crafted; a damage-slider as we know it would not be very useful for most people.
Now I did read the thread, and while I'd not write my post again, I'd still have said something similar, taking into account the posts before it.
So let me correct myself:
Yes, an improvement to the system would be a good thing, although my personal opinion is that the levelling system is something that was already rather good in TES games (increase by use is a concept that always seemed right to me).
Edit: To be constructive: I'd want the attributes to increase by use just like the skills; also, as I said elsewhere, I'd also like unused skills to suffer over time. I'd get completely rid of levels and have it so that the player can at any time re-focus the character completely (skill wise) given enough time for practice.