Is there a point in leveling up in Skyrim?
Short answer: Well you get a Decapitation Perk. Do you like chopping heads off in video games?
Long answer: I think you are looking at The Elder Scrolls the wrong way, but you are not wrong, TESV: Skyrim is an Action game/ Open World masking itself as an ARPG. The RPG aspect is heavily stripped down to the point it feels provocative. Builds don't really exist in Skyrim. Levelling is automatic outside perk selection (which you can max out in everything eventually). However what The Elder Scrolls handles well and still prevails-in is player exploration, the freedom you are given to just go anywhere and carve your own adventures is what the franchise does well. Skyrim is pretty good in this area.
Skyrim is not a rewardingly challenging game, it is easily exploitable and outside quest items loot is randomised. You are not rewarded for your efforts. If you wanted a ARPG with rewarding loot and opposition? you are better off looking at the Monster Hunter series, and alternatively EldenSouls games, however these games are far more linear with less focus on world-building.
In a few years you may also want to keep an eye out for a game called The Wayward Realms, which is essentially former Bethesda staff making an Elder Scrolls spiritual successor without all the casual pandering/ fluff.
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