As far as combat goes, hit points do a fine job of representing increasing toughness. Sure that gate guard might be able to score a hit against a heroic higher level fighter but he will be doing damage that represents possibly no more than the energy expended to parry it and he certainly won't be standing after receiving the returning blow.
Of course the implications of this mean that large numbers of those guards will be able to eventually wear down that super fighter which is more satisfying for the types of games I enjoy playing. Automatic misses due to nothing more than level discrepancy remind me of MMO mechanics.
In such games a level 40 warrior taking on a level 65 monster simply cannot hit. You can bring 100 such warriors to the battle and not be able to scratch the monster because the mechanics are written to prevent you from doing so.
If hit points and damage dealing ability are supposed to represent how much tougher one thing is than another, then the only purpose of massive bonuses to hit and defense are to artificially define what is allowed to interact with what. In reality it makes the entire level concept as a measure of relative power meaningless.
The situation reminds me of one that cropped up in the Babylon 5 space battle game. The game was point based but the raider fighters could not so much as scratch a Mimbari fighter. So a single Mimbari fighter taking on 1,000,000 raider ships would win 100% of the time.
This is the kind of thing I see scaling hit/defenses doing.
The way levels work in this manner, may very well be a byproduct of the tools we are using to play the game. Using a d20 die for "to hit" rolls against:
"AC" + (level_target - level_attacker)
is one of the easiest ways to scale monsters/characters of differing levels. (It's by no means the only way). It's also one of the easiest ways to implement character advancement.
If one wants to eliminate levels but still retain character advancement in some form or another, there's other systems which do this such as Runequest. Runequest has players improving their skills with repeated use.
Another way of removing the level scaling in 4E, is to drop the +level/2 adjustments on the both the player character and monster sides for both attacks and defenses. With this being done, what's left that differentiates the power of the players and monsters, is how many hit points they have and what powers and abilities they have (including magic weapons). The side which has significantly more total hit points (including healing surges, potions, etc ...) and better weapons/powers, has a better chance at surviving a battle purely by attrition.
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