dtgreene: Or something like Wizardry 8, where skill increases (from use) have no effect on stat increases (from level up).
paladin181: I prefer daggerfall. You get your skill based level ups and they affect your attributes, which affect your HP and the like. The level ups aren't compartmentalized like in Morrowind, Oblivion and even worse in Skyrim.
Daggerfall has a few aspects I don't like:
1. Starting stats and stat/HP gains are random.
2. The higher your starting skills, the lower your potential level advancement.
3. Your highest minor skill is, IIRC, more important than your lowest major skill for advancement purposes. (In other words, it's the minor skill, not the major one, that determines when you advance.)
4. You get no extra reward for accomplishing harder challenges. (In Wizardry 8, strong enemies give more XP, and casting (or failing to cast) powerful spells gives you more skill experience; you see none of that in Daggerfall.)
5. Daggerfall still has HP gains from Vitality being non-retroactive.
6. The fact that only your main skills affect level advancement, combined with level scaling, leads to the counter-intuitive strategy of making sure the skills you actually intend to use are all Miscellaneous.
Wizardry 8 has none of these issues, except for the fact that it does have level scaling (but with manual leveling (you only level up when you click a certain icon) and skills not being tied to level advancement, it doesn't lead to the same issues you see in Daggerfall (and, from what I've read, even worse in Oblivion)).
Of note, Arena (which I'm playing right now) only has issues 1 and 5 out of this list.