I don't mind the tier system, but I am still on the fence over the cost to raise a tier. I would prefer to spend the XP on more tangible improvements to my character such as skills, attributes, spell lists, etc. I also think the limit of 1 skill rank at tier 1 might be a bit too restrictive. I like the suggestions Khaalis made of a 2 rank limit for non-combat skills and 1 rank for combat skills.
From there, I would have progression from tier to tier based on how much XP you have spent improving your character. Once you hit some threshold, you move from being seen as an upstart to being a true hero. The logic here is that to have earned the experience to improve your character, you would have most likely had to of done some pretty amazing things (in the eyes of your peers). As it stands, I see the XP cost to move from one tier to the next as a sinkhole as the only tangible benefit – as far as I can tell – is moving to a higher die. This might make task easier to achieve and would allow you to improve your skills to higher ranks, but it is a tough pill to swallow.
From there, I would have progression from tier to tier based on how much XP you have spent improving your character. Once you hit some threshold, you move from being seen as an upstart to being a true hero. The logic here is that to have earned the experience to improve your character, you would have most likely had to of done some pretty amazing things (in the eyes of your peers). As it stands, I see the XP cost to move from one tier to the next as a sinkhole as the only tangible benefit – as far as I can tell – is moving to a higher die. This might make task easier to achieve and would allow you to improve your skills to higher ranks, but it is a tough pill to swallow.