I do agree with the leveling system. Not with the puzzles, I love the puzzles. But the leveling system, I feel is weaker than in LoG 1. In LoG 1, except in very very few places, when you killed an enemy it was dead. Gone. So if you killed everything from floor 1-5 you would have at max "X" exp, and everyone would be "X" leveled. So to balance this, the higher floor enemies were stronger and different. The enemies all had a level, and they didn't get stronger. So enemies became easier the more you leveled, especially when you leveled in magic to help clear lots of enemies quickly. This also made it so the Comunity could make even MORE stronger enemies in stronger dungeons so you can take your high level party and keep leveling up. Your level and skills depended on how deep into the game you were and it was balanced around that.
LoG 2 tho, is set to be 'non-linear' and it can't be that if some enemies in areas were just too strong and out leveled you. So instead from what I have seen, everything levels with you. Or most of the enemies do anyways. Enemies that are hard at level 1, with a rock as your weapon, is still hard at lvl 18 with wearing heavy armor and throwing out bolts of lightning. Also enemies respawn everywhere, so you can grind and gain even more levels. But to a limit without cheating. In LoG 1 they wanted you to end at around X level, so all the enemies in the game combine'd experience got you to that level and no higher. In LoG 2, they make it impossible to get to the next level without grinding a really really really REALLY long time. Effectively, people can't make dungeons that are harder or weaker in LoG 2 since the enemies level with you. And because of the 'soft cap' People can't make higher level dungeons for higher level groups, because it's impossible to legitly get that much exp going threw a dungeon and killing a few enemies along the way.