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The play style I'm looking for in my games is mostly based on social interaction and exploration. Sure, combat plays a role, but the game (hopefully) revolves around the PCs and their stories, and the effect their actions have on the game world.
To that end, I have chosen not to use an XP-based system. Killing ever-increasing amounts of monsters to get to that next level? No, thank you.
I prefer to award levels when it's appropriate, story-wise.
I enjoy using milestone leveling to encourage “accomplish big, grand things” gameplay, but in my experience, it is hard for players to discern how to promote this themselves. More and more, I am convinced of returning to an XP-for-treasure model which encourages exploration and smart thinking, rather than aimless or “kill all the things” gameplay.