For the record, I definitely had this feeling that despite my damage and power increasing as you have described by level, actually leveling up and looking at my character sheet 'felt' bad. And because the current system wasn't obvious (nobody tells you your damage increases on level up) you kind of get the feeling that it does but it doesn't erase the negative feeling of seeing a -stats on your character sheet.
So while I eventually had hints that I understood what was happening, I didn't like it.
I hope that your next attempt achieves the same or a similar result with its scaling,
but I can already tell that it will 'feel' better.
If you do feel it worthwhile to make a return to the old math, take some time to dress it up. A rough example (Each point in a stat generates +(#)% of bonus damage per level, so 100% is parity where you put 2 points in per level) But it's always a positive number, even if it's 0.92... or 92%.
Or you can simply state your level adjusted damage bonus value/modifier value. It would increase with each level and stat point, so it would always look positive and be improving on your skill sheet (if you were investing) but the actual numbers would be the same as they are now.
In other words: I think the problem with the previous system was presentation, not function.
The new system looks good - so I hope it functions the similarly.
I rather think that if putting 100% of your 2 points per level into your primary attack attribute is "what is expected" to maintain parity, then it still seems to be a problem even if it's presented slightly better.