Looks like it, doesn't it?

But I think this is the root of the balance problems they have. And that they are not really sure what to do shows the massive changes in-between the beta updates.

It is just impossible to fight above or below your level because everything is level dependent. Everything.
Not only has the character his hitpoints increased (base * level) but also his weapon (base damage * weapon level) and his armor (base * armor level) are increased. That is simply to much per level.

Tactics are redundant, because you need to be the same level.

But the most important aspect for me is, that the gameplay is completely linear. You need to be a certain level to access an area. The open world is just an illusion.

It is such a beautiful game, and yes I think it somehow gets ruined by this poor system/mechanics.