GX.Sigma
Adventurer
I think it comes down to people's perception of progression. In a game where everyone has cool abilities, you start to think of "progression" as "getting more cool abilities." I'm certainly a little disappointed whenever I level in 4e and don't get any new powers.@GX.Sigma, you have a good point there - I wasn't thinking of the demihumans (though in OD&D I don't think they're distinct classes - isn't that a Moldvay thing?)
It seems to me that in classic D&D level is first and foremost a measure of power - with hit points, and consequence expectations about dungeon level penetration capacity, as the mechanical expressions of that. Class features were in certain ways secondary, I think.
The idea that the primary function of a character level is to dispense some mechanical feature is, I think, a more recent (perhaps 3E and onwards?) idea. But once it becomes the dominant model of levels, then dead levels become redundant.
Does that make sense? (And I'll call @shidaku into this reply too.)
But in a more quick, lightweight game with a broader focus (which is how I want to play D&DN), getting new abilities isn't really the point. For that kind of game, I'd rather just get +1 to one of my basic numbers, write it down, and forget about it.
Basically, I think dead levels should be a player option. Mearls's solution sounds good to me.