It's worse than that. You get weaker ANYWAY because those two points are just to maintain the damage you were doing at level ONE. Health increases per level, so as enemies level increases, the amount of damage those level one power skills do to them becomes less and less effective.
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Actually as long as you're getting new weapons and equipment, I've noticed your damage steadily does go up (so long as you basically only put points into your main stat). However, I do hate this kind of system because, as many people have said, it makes multiclassing impossible. My hope is that when they next update the game they'll have seen a lot of the bugs and issues on the forums and fixed as many as they could, but it could be weeks till then.
