Alright, how about keeping the experience, but give it the ability to "upgrade" the Ilari as well, so that you can get small boosts (cumulative over time) to new characters in case of death, but the current character gets a larger boost?
Again, I'm talking only a very small boost per XP-based upgrade - no more than 2% of current stat per level, and you'd only get the points from bosses and missions.
If you have to kill 10 or so bosses per upgrade (depending on the settings of your difficulty options and the difficulty tier of the continent), it simply gives you the option to use that when you find the game is getting too difficult. And, yes, you could disable it at worldgen if you don't want to be tempted to find a manner in which you could level yourself to be as dangerous to the Overlord as the Overlord would be to you at initial generation.
I really don't understand why people are actually opposed to the idea of "enable the player to empower themselves." Is it a lack of self-control? A desire to NOT want to find a point of encouragement to keep playing the game? Eventually, you WILL grow bored of being so overwhelmingly powerful where you are, and actually seek out new challenge, whether it's in generating a new character or simply moving on to the next continent.
It isn't even about WANTING to have an easy ride (Or, at least, not about being given an easy-mode stick), it's about WANTING to feel that exploration and challenges can continue to make the character stronger. Simply turning down the difficulty doesn't make the character stronger, it makes the world weaker. Right now, as you continue to kill things, it unlocks new, more powerful, more dangerous enemies. But, it doesn't make the characters any stronger. The sole purpose of even bothering with taking out the lieutenants and overlord, is to progress. Yet, that progression is lost with every new continent you move on to. And that progression doesn't make you stronger, it makes the world stronger.
As it stands right now, if you kill a lieutenant and push the continental tier up, you are effectively weakening yourself. Even once you get the correct spells for that tier, you will only do, at best, about the same amount of damage in relation, yet you will take more damage, you unlock more danger, you make the world more challenging. So, using your very viewpoint, why should the player EVER bother trying to progress in the game, if it only serves to punish them with no form of reward?
You do so, for challenge. And challenge should always have its own reward. Otherwise it's challenge for the sake of challenge, which is just trying to create an unneeded meat gate. Increasing the difficulty, increasing the tiers, should come with a form of reward that you can't get at lower difficulty. You should be given a way to not just overcome the challenge, but to be able to override the challenge with persistence. Not everyone can progress the same way, and it would also mean that even between characters, the entire game feels different.
Then again, maybe I'm simply not the kind of gamer that should ever be able to find enjoyment in the game. I only have 42 hours into it so far, and I'm still just on the first continent, because I'm exploring. I wander around, I look for what there is to be found, I just set out for an hour or two at a time without checking back in at base. By saying that having a way of persistent character advancement (experience points) which can be used to make my character stronger, you are effectively saying that my method of playing the game is fundamentally -wrong-. That I shouldn't want to explore and see what there is to be seen. I have 8000 upgrade stones that will never be used, but I do wish I could upgrade my HP and damage more, because letting the world get stronger just makes things take longer for me to play the game in a way I want to play it. But simply completely removing the upgrade stones and giving me NO way to promote, enhance and power up my character after generation beyond excessively tiresome attempts to find better enchantments, doesn't make it any more desirable to play.
If I feel I am making progress, I keep working at it. Once the feeling of progression is gone, I look for a way to progress again. If there's no more room for progression beyond just making the game harder, I'm done playing. Especially with a game that has no end. If progression becomes difficult because it gets to be too grindy, even after I've done everything to minimize the grind, at least the option for progression is still there, but it means I can go find something else to do without being strictly punished for it. I can still "level" in the background, while playing the rest of the game. I can still look for things, and let the upgrades come to me as they do, once it's no longer something worth putting the conscious effort into. But if there simply IS no progression, nothing more than "You've done well, we shall now punish you for it" then why would I continue to play?
First of all, there are ALOT of ways to empower your character right now. Granted, some of them really empower the entire civilization, but they're still the same in basic effect. Running around and grabbing spell parts is one of them; it is equivalent to finding a power item in Metroid, like say the Ice Beam, or the Varia, or the bombs, or whatever it is. When you do this on any continent, you either get a totally new spell, or you make an existing spell more powerful.
Enchants are the second way, and they can get pretty crazy at times depending on just what is going on, particularly as the game still has some screwy balance issues right now (Like JtP missions.... I'm damn near invincible in these right now because nothing can ever get the chance to even fire.....)
And so on and so forth. You have ALOT of options in the game for making yourself stronger and giving yourself more and more tools to work with.
As for the difficulty..... honestly, that's just how some games SHOULD work. One problem I have with gaming lately is that so many games are SO bloody easy. RPGs (for me) are by far the worst offenders, but it affects most genres; this is why I havent bought a retail game in months, but am playing THIS absolutely to death, among certain other PC/indie titles as well. The way progression works, as you put it, by "punishing" the player by getting harder as you go...... this is how MOST games used to work. *MOST* of them. It didn't used to be an uncommon thing. NOWADAYS sure, it's very, very uncommon at least among retail titles. But it didn't used to be.
The idea is simple: The further you get into the game, the harder it gets. .....that's it. That's the entire concept. As you get closer and closer to the final battle or event or whatever, the challenge just keeps escalating. That's how most games used to work. And I think THIS one takes alot (quite alot) of inspiration from many older titles, as opposed to taking inspiration from current titles (thankfully!).
The idea wasnt to "punish" the player by making things difficult, or by not "empowering" their character. The idea was that the player would practice..... they wouldnt empower their character, see.... they would empower THEMSELVES. The PLAYER was the one that needed to get better, not just add numbers or abilities to their character so that enemies went squish real easy again. A victory over such a game, that gets nastier and nastier as it goes on.... well, it used to feel like an actual victory. You got better/stronger and eventually overcame the crazy crap the game threw at you, even if perhaps your CHARACTER was a bit weak, as was definitely the case in many games back then. But winning one of those was just different; alot of recent games, I dont bother to complete. Why? Because there's absolutely ZERO sense of accomplishment. Alot of big games today are designed not to provide a challenge, but to tell a blasted story..... they make themselves easy, therefore, to get a chance to make sure every player hears that story so they think they got their money's worth.
....Bloody irritating, if you ask me. I find this really, REALLY boring, so I tend to just not bother buying those anymore.
As for what you mention about exploring..... that's totally fine! Do so! The game encourages it! Right now you have alot of freedom with this. You can play it in such a way where you just upgrade one or two spells, and then rush out and try to smash the overlord/lieutenants/whatever. Or you can do it as you say, and spend lots of time roaming around grabbing stuff. You have alot of options right now, which is why I'm baffled that you seem to think otherwise. Even with my generally aggressive playstyle, I'm pretty much doing the same in my own game; I'm on continent 3, and I've lost track of just HOW MANY spells I have, and have upgraded. I think I have ALL of the summons, for one thing.... and that wasnt easy to do. The game is getting pretty tough at the point where I'm at, so I'm spending some time gathering some extra spells and such that might give me more options later on. And no, this isnt the same idea as running around getting EXP, because none of these spells are, for example, allowing me to deal way more damage or take way more hits; they tend to perform similiar functions to spells I already have, just in different ways (Ice Burst versus the Whip spells, for instance, is one that I've been working on, or the "rock" spells versus straight-shot types).
I don't see how farming for Enchants and Shards is less grindy than killing monsters for EXP.
I wouldnt know, as I've never once had to do either (and I never will), and I play only on high difficulties, so.....
But this is because the game is balanced enough that it NEVER *forces* a situation where doing one of those is the only way to progress (wheras RPGs often DO). I can progress against even very crazy bosses by INCREASING MY OWN SKILL. Not by increasing numbers. So I've never grinded, unless spending 10 minutes to get 150 or so Moon Lamps counts (and THAT one feels more like exploration to me, more like getting Missiles in Metroid, rather than getting EXP in some RPG).
Also, Martyn van Buren there is right: The game DID used to have a very similar "levels" system waaaaaaaaaayyyyyy back in the stone age of early beta, and frankly, it just made things WAY more annoying (and it HEAVILY limited exploration); I suspect this is why it was removed. You can probably find info on the exact ways it functioned somewhere, if you're interested, I dont know where though. I dont recall the details well enough myself (my memory is TERRIBLE).