For the sake of the question, disregard perks entirely. What I'm asking, essentially, is if you like leveling based on kills/quests or exclusively skill increases.
My own opinion is en-spoilered, because I'm far more interested in your opinions than your response to mine.
While I appreciate the concept of a character's growth being based on learning and experience through the practice of its skills, it does lead to the annoyance that I have with Oblivion, and, to a lesser degree, this game.
I can sum it up in a sentence, really: Monsters outside should not suddenly become insanely powerful literally overnight just because I decided to practice my blacksmithing / magical abilities.
Little did I know, the powers of all the creatures of the world are limited not by time, but by whether I decided to get really good at pickpocketing. My ability to remove items from NPC inventories is also bound to the ability of flame atronarchs to spawn where wolves would have just a few hours earlier.