PHB, page 143; Daily and Utility Spells: Your spellbook also holds your daily and utility spells. You begin knowing two daily spells, one of which you can use on any given day. Each time you gain a level that lets you select a daily spell or a utility spell, choose two different daily spells or utility spells of that level to add to your book. After an extended rest, you can prepare a number of daily and utility spells according to what you can cast per day for your level. You can’t prepare the same spell twice.
If you replace a spell because of gaining a level or through retraining, the previous spell vanishes from your spellbook and is replaced by the new spell.
If I am reading the correctly, this means that you don't prepare spells of specific levels, you just have a total number of daily and utility spell slots to fill, and you can choose to fill them with any of the daily or utility spells in your book, regardless of the level of the spells, as long as you only prepare each spell once.
It also means that when you replace a spell (due to retraining or the power replacement at lvls 13, 15, 17, 19, 23, 25, 27, and 29) only one of the two spells you gain is replaced. (i.e. when you gain lvl 15 and can swap a daily power, you gain one lvl 15 daily spell and lose one of your lower level daily spells, you don't gain two lvl 15 spells and lose 2 lower level spells. (or does it? I'm not totally sure I'm reading it right.)
So a lvl 16 wizard has 3 daily power slots and 5 utility power slots. The wizard also has 6 daily spells in his spellbook and 9 utility spells (because you don't an extra spell for your paragaon path utility power at lvl 12 - there is only one lvl 12 spell available to each paragon path).
He could prepare his lvl 15 daily power, and both his lvl 10 daily powers. Or his lvl 15 daily power, and both his lvl 5 daily powers, etc.
He could also prepare both his lvl 16 utility powers, his lvl 12 utility, and both his lvl 10 utility powers.
The spellbook effectively lets the wizard fill his daily/utility power slots with the highest level spells available to him, unlike other classes that are restricted to using 1 power of each level available to them.
Right?
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