helium3 said:
The problem (and I suppose this is why they're game designers and I'm not) is that I can't understand how they would pull off this trick.
It always comes back around to the original problem that existed even in 1ED and 2ED. The DM has to have some way of determining whether or not a given monster is too tough or too weak for the party to handle, and from that extrapolates an appropriate amount of XP to give the party when they successfully deal with the challenge presented by that selection.
As the DM, I need to know whether or not a beholder is going to walk all over or get walked on by my party. I need to know if I can hit them with another beholder after they slice through the first. And then, once its all said and done, I need to have an idea of the appropriate amount of XP to award each of the players with that participated.
So, if there's some way of side-stepping this whole process (besides just sorta doing what I please and not worrying about the consequences) than I'm kind of curious as to what it is.
Check my last post on the first page:
http://www.enworld.org/showpost.php?p=3767711&postcount=40
Note that it is speculation, but from what I read so far, it makes a lot of sense.
So, the "trick" they pulled off:
The monster level basically tells us: The attacks and spells of this monster can reasonably affect typical members of a party of its monster level. The party can also reasonably effect a typical monster of its level with its attacks and spells.
But the level won't tell me how dangerous its attacks and spells actually are. Maybe it is firing Melf's Acid Arrows, or it is firing Fireballs. Maybe it's cast Charm Person, maybe it casts Dominate Person. Maybe its attacks hit for 1d6+3 damage, or they hit for 2d10+15 damage. The point is just: it will hit, it can be hit, its spells have a chance to not be resisted by the characters, and it has a chance to fail to resist against spells cast by the characters.
(chance means "reasonable" chance, like around 50%)
The DMG will explain encounter design as something like "To put a easy encounter against a group of level N, it should be worth no more than X_easy. To put a challenging encounter against a group of level N, it should be worth no more than x_medium. To put a difficult, but survivable encounter against a group of level N, it should be worth no more than x_difficult."
A Level 10 Dragon (10,000 XP) and a Level 10 Brute Minion (5,000 XP) might look like this:
The Dragon has 4 meelee attacks at +15 attack bonus, dealing 2d6+11 points of damage. He has 200 hitpoints. His AC is 25 and his Saving throws are Reflex +8, Fort +13, Will +13
The Brute Minion has 2 meelee attacks at +15 attack bonus, dealing 2d8+6 points of damage. He has 120 hitpoints. His AC is 25. His Saving throw are Reflex +8, Fort +13, Will +8.
Both have the same level, because a party of level 10 will be able to hit each of them with spells and attacks, and they can also hit them in return. But the Level 10 Dragon has more attacks in will therefor deal more damage. He also has more hitpoints, meaning it will take longer to take him down.
In 3.5, this Dragon would have a higher CR than the Brute Minions. But if he would have been used against a group of its CR, he would have trouble hitting them, and the party would have a easy time doing the same. Which might make the system work as advertise, but it's not really that great. If you take 4 of these Dragons against such a party, the encounter would be supposed very challenging (EL = PL +4), but the actual play result would differ.
Note that the numbers are entirely made up, and the ratio of attacks/damage and hit points might actually not be reasonable, as doubling attack and hitpoints might in fact quadruple the dragons total "power".
Note also that this Dragon is clearly not a D&D 3.5 Dragon, because they are a lot stronger than that for their given level.

The designers even admitted that Dragons are more powerful than their CR indicates, because they are supposed to be "tough" encounters. Unfortunately, this is against the spirit of the CR system, and if a unaware DM uses a Dragon in a standard encounter, he and the party might be unpleasantly surprised with the results.
The new take would address this issue. You can have a strong monster suitable for a given level, and you can have a weak monster suitable for a given level.
I personally encountered the limits of the CR system a lot in the past.
Sometimes, I want to throw some PL=EL at the PCs. If I use a single monster, it is quickly overwhelmed, and doesn't feel like a challenge in the slightest. If I use multiple monsters, their attacks and armor classes are so weak that they never hit anyone and are also quickly destroyed. The end result is the same as with the single monster, the encounter wasn't challenging. Sometimes, it is okay, but if that's what always happens, it gets boring.
So, I make encounters more difficult and don't challenge the players with PL=EL encounters, but with EL = PL +2 or EL = PL +4 encounters. But this means they level a lot quicker, which isn't always what I want, either. (And I don't want to change XP rewards and then having to figure out what I do with treasture rewards)