The game's provided monsters and their difficulty, compared to the capabilities of the player characters, are the measuring stick for what's "powerful" and "weight classes" in a system.A PC's "weight class" is a set of numbers on a page compared to another page with a different set of numbers. Erase a number on the second page, the one next to "CR", and replace it with a lower number. Ta-da. We just got a new set of scales.
Encounter balancing is always something of an arcane art. Do the game designers and the players/dms enjoy the same level of difficulty? Are the assumptions on relative effectiveness between creature abilities and PC abilities valid? Are they predicated on a certain level of finesse in implementation by player/DM? Are they materially impacted by pacing or sequencing? Are DMs made aware of those factors and given guidelines to adjust accordingly?
Milestone leveling is effectively a way GMs can communicate to players "don't bother doing monster/xp math, this is my own thing". A GM who is, relatively, a tactical genius may throw monsters -2CR at players. One who is outclassed by their players, or constantly forgets monster abilities, or who gave out too much loot, may use +2CR challenges.
Can a level 3 group handle an ogre? Can they handily handle 6 ogres? How likely is it that there are a dozen ogres to pose a threat to the village, rather than one or two ogres?
A tier 3 party can handle a CR23+ ancient dragon... how many ancient dragons are there in the land? How many do I have to add to the setting to consistently challenge the party?
You say I can just change the numbers on the sheet... OK but now I'm basically rewriting the monster manual, especially since I'm making an ancient dragon CR16, I'm going to need to make a SuperAncient dragon for the new CR23.
5e's power scale is a bit whacky after tier 2; I'm comfortable saying that.
Increasing PC power, and then increasing monster power to compensate, just means that we're throwing higher and higher numbers at each-other; I'd prefer to avoid that, and keep the numbers lower... crazy high numbers are why I got out of PF1e, and why I didn't turn to PF2e.
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