character progression and levelling seemed to be fine, at least in my opinion.
Since Mobs do not respawn there is a certain amount of xp you can get, i would say level cap is where you have done everything that gives xp (including killing every single npc in the world, but what would you get from that?), and this may be around level 20 if you play "normally" and maybe higher if you amok-kill everything that isn't (or isn't anymore) involved to a quest.
during the beta, i often even had points left (Trait points mostly), and didn't know where to spend them. Had no problems with the fights at all (ofc i died sometimes, but not because i was too low on levels), had no problems to get xp and progress in the game.
in the end, this game isn't about levelling up your character, or min-maxing stats and such. It's more about finding stuff, puzzles and quests. Or create your own adventures as soon as the creation-tool is ready.
