This is how I run
1st. level
local nobody with a class
2-3
local hero (local meaning hometown)
4-6
first among equals (there are other NPC's with these levels, but in positions of great power or authority)
7-9
Heroic Characters are the most powerful individuals around, as important as kings, would likely have titles and estates at this point
10-12
End Game Characters must fight against literal world ending events, gods, dragons, and ancient magic.
-So I have the party level as needed. When they transition from one area to another they level up, as does the world around them. There are no 12th level bandits, but there are 12th level liches for example.
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I would have no issue with the game being set at a particular "power level" and staying in that zone. From my understanding, that's sort of the premise behind the E6 rules, right?
That said, while I might be OK with remaining, say, level 6 for a prolonged period, I would still like to see character growth realized in respect to the game world somehow. Whether that be bonus feats, extra skill points, or Something Else™, the better part of most stories is the growth of the characters.