I think people should be allowed to over level again as a reward for the grind. I know it was introduced to make sure content was always at a set level, but I think people are over that now.
I don't think it would be like before because of the changes that were made. There's content that is currently at 2050, and I've put a fair amount of time in and am still at 2038. There are going to be people above 2050, obviously, but I think a far larger contingent than ever has not made it to that.
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Frankly power level has always been goofy. The issue is that content should not be inherently easier for someone who has a higher power level than one who does not - obviously this is referencing strictly the arbitrary number in question and not raw experience or skill. The core basic idea of a light deficit is what I think of primarily when balancing activities. The different levels of strike difficulty are probably the best way to illustrate this - for example grandmasters have a recommended power of 2040(?) but enemies scale up to 2060. This is where i find artifact power to be particularly asinine because, while it would take a decent amount of time, theoretically you can get to 2040 no problem. So is the GM deficit supposed to be 20? It's borderline trivial at that deficit. This is where I actually think an old method of strike difficulty would come in kind of handy here - the Seven of Cards or whatever that thing was way back in vanilla d2 that allowed you to change the deficit and modifiers. If you meet or overlevel above an activity's recommendation, suppose a GM, maybe you could input a combatant difficulty different to that set, with rewards scaling as you go up - though to be clear I think this should be a linear scale, not exponential or something like that. Additionally, the ability to fine tune rewards would probably not be a bad idea either. We mostly have this for weapons, but if I could forfeit something like golf balls or ascendant energy for more nightfall ciphers that wouldn't be a half bad reason to get up there either. Idk, just spitballing I guess.