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I can't tell if you are being serious or just trolling, but I'll give you the benefit of the doubt.
Diminishing returns on under leveled enemies is extremely common in the genre, and has been for decades. Way before online DLC downloads were even possible.
In Tales of Arise, they did a very good job of balancing leveling with your progression in the story (at least for most play styles, which is really all you can ask for, and more than most succeed at). If nothing else, this confirms not based around the DLC (and I'm not going to begrudge them for selling boosts that let a single player play the game in a style other than what the developers intend for the best experience).
That said, your personal preference is just that. You can prefer a non-scaling exp system and not like their choice. But in the end it has minimal effect because if they didn't do that, they would instead raise the amount of required exp to level. In any case, you really shouldn't be grinding on trivially low level enemies in this game. Camping/inns are free so no matter the exp system I would still recommend fighting higher level enemies and restoring your health and cp more frequently for faster results.
Yep, this is one of my biggest complaints about the game. You're basically forced to fight at the same level as the enemies all the time, no matter how much you try to grind exp.
On the one hand it's the devs trying to ensure the game stays challenging from start to finish, and on the other hand its the devs trying to encourage players to buy MTX if they want to be overleveled.
Definitely not trolling and I will have to disagree on diminishing returns being common in single player rpgs. I don't recall any that I have played, western rpgs or jrpgs, that have done so. Only ever the simple exp needed to level increase, not lowered exp gain from enemies.
Also, that includes older Tales games. This was not a thing in the past. Bestiaries showing set exp gain is proof of that.
The issue is that 90% of the time the bosses are 2-3 levels above you and the mobs are 3-5 levels below you so there are no higher level mobs to grind exp on so that you're at or above the boss's level.
The only time I was able to grind exp on higher level mobs was when I unlocked a sidequest that unlocked an area with lvl 66 enemies. I had to set the setting to "story" so that I could farm them for exp. Aside from that the game doesn't really give you higher level enemies to level. Mobs are typically at or below the party's level based on where you are in the main story.
1 has nothing to do with loving grinding or not
2 "forced to fight enemies at the same level" has to do with exp gain, not being able to beat bosses or not
This is the point lol. If you're lower leveled compared to the boss the boss is spongier and is harder to stagger. The fight becomes annoying because it takes much longer.
Moderate is a great difficulty for me, but it only works when I'm at the same level as the boss. If I'm below the fight is simply tedious.
Not to mention the game locks equipment to story progression as well. You can't upgrade your gear until you get to the next set of enemies that drop the next set of materials, so even if you did try to level grind you'd still be undergeared.
It's a flawed system.
If you're at the same level as an enemy and getting like 100 exp using the EXP boost L won't make any difference.
You have to make sure that your equipment is up to date, that you use a good/appropriate camp meal (the one which lowers the elemental dmg received is amazing and from what I've heard quite necessary on higher difficulties) and that your accessories are as fine tuned as they could be (you can transfer skills between accessories). I see people mention tweaking with the ally AI (custom strategy) but in my experience that does not seem to do a whole lot of good (focus on healing seems to work best at all times, which is sad; AI in previous games was smarter).
Overall, this title is quite focused on dodging (or blocking as Kisara) and I think this mechanic is what makes things difficult for some of the players unwilling to turn down the difficulty level. Listen, you can't be good at every game.
After you finish the main storyline you DO unlock a way to grind exp (you can farm a level 95 boss) but that's for people who want the achievement (reach level 100). Artifacts also help here and so do some of the meals you can cook.
What if being overleveled is part of the fun for you? Also OP is making the point that the game forces level progression at a set rate. This limits player freedom in choosing how much or how little they want to level and progress.
Pretty much all JRPGS have some form of level grinding in place either by having enemies give fixed exp and/or by including enemies like metal slimes which give tons of exp (even though they're hard to find). The fact that Arise doesn't really have that until much later in the game is disappointing.