I personally think the only current problem with leveling as it stands is that it's too long for something that's so EASY. For the first 20-25 levels, the only real challenge that your character is presented with is running out of PE or ME and going hungry, and in general leveling is more about finding those NPCs which you can kill quickly without a challenge than it is about doing anything remotely dangerous or interesting. Mind you, this is also the problem with enchant armor.
I can't think of anything to offset that problem, except perhaps increasing the amount of XP gained from "much more powerful" or above NPCs: But the "problem" with that, if it could be put that way, is that you'll just make power-leveling easier: But at least it will be more engaging.
In the end I'm with Baldric. If you stick with a character and even only level occasionally, you'll GM just on account of the fact that some of your friends will force you to level, and it's not at all imposing unless you're just leveling up alts all over the place. When you start playing a character instead of just a race/class/cabal combination (Which is the point of the game as I recall), leveling is hardly a game-killer.
As for mercs leveling slowly:
Code:
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o [Scores] Merc o
o===-===-===-===-===-===-===-===-===-===-===-===-===-===-===-===-===-===-===o
o Status: Champion(1) Race: Giant Class: Mercenary o
o Kingdom: Taslamar Cabal: Independent o
o===-===-===-===-===-===-===-===-===-===-===-===-===-===-===-===-===-===-===o
o Coins: 1 obsidian, 9 platinum, 8 gold, 9 silver, 8 copper o
o Carrying: 1/16 items Load: 3.1/419.0 pounds o
o===-===-===-===-===-===-===-===-===-===-===-===-===-===-===-===-===-===-===o
o Health: Excellent Mental: Pulsating Physical: Fresh o
o Attribute points: 0 Wimpy: 0 percent Mode: Kill/aggressive o
o===-===-===-===-===-===-===-===-===-===-===-===-===-===-===-===-===-===-===o
o You are standing. o
o You are over two-thirds of the way to the next level. o
o You have played 54 hour(s) so far. o
oOOOoOOOoOOOoOOOoOOOoOOOoOOOoOOOoOOOoOOOoOOOoOOOoOOOoOOOoOOOoOOOoOOOoOOOoOOOo
CHA: Sociable
I RP'ed a great deal on this one. I also GM'ed a gnome merc in short order, so I know they're not that slow.