One thing i mentioned in the Ice thread would be a nice small addition to skill levels.
At lvl 1 you would create only small ice surfaces with any spell that can do it, at lvl 2 they would become bigger, lvl 3 even bigger - etc.
Same thing can be done for area of effect of fireballs, Starting as a very small explosion and then becoming bit bigger and bigger as you invest more points into Pyromancy skill.
Size of clouds that a ranger can create with arrows maybe?
Earth magic would be easy to adapt this way too.
As would master of arms various skills.
Not sure what can be done for witchcraft in this sense, since it doesnt have AoE spells or effects...right? But something similar can be done, surely.