Elder-Basilisk said:
It doesn't seem that way to me. Even if you don't give out role playing awards, characters usually have to advance the story, fight or sneak past monsters, and at a bare minimum, survive, in order to gain levels.
I must agree here. The "DM thinks you deserve a level now" method also has mechanical problems since D&D has a number of spells and item creation feats which cost experience points. If experience points are never quantified, there's no way to quantify the sacrifice that casters make to scribe scrolls, enchant armor, etc.
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Well, I quantify the sacrifice, or rather, I decide how something has to be balanced if an item creation feat would be taken. Normally, that would mean that the item creating PC would not lose xp, but the rest of the PCs would be compensated to balance the result. I may even look up how much xp the item created is worth, and dish out matching items, if that is necessary to balance the game.
Since the DM controls everything, I do not think it is wrong for him to decide when the party levels, especially not if the players have some say in that as well.
In my campaigns, my highest priority is for everyone to have fun. I don't use CR and encounters, I just aim for a pleasant evening. If everyone had fun, then the session was a success, no matter if the PCs slaughtered an army of fiends or just hang around at a ball "doing nothing".
If "DM says you level" sounds too strong, then see it like a set of house rules: There is only story award XP in my game, XP is dealt to all PCs equally, and only when a new level is reached, and items do not cost xp - the whole party advances roughly equally in gear, no matter if you make it yourself, or if you find or commission it.