I dislike level caps in more recent RPGs for the reason that I become more conscious of breaking my character than actually immersing myself. Especially when there are only so many perks, feats or what not to go around but a wealth of playing options. I feel like Elder Scrolls games are the worst culprits in this regard.
Having said that, I felt that BG, in my decade old memories at least, didn't offer much in way of compelling development when you levelled up. Often it was 'Level Up', no new points to assign, 'Click to Finish'. I would like some choices at regular intervals but none that could potentially harm your ability to finish the game, if that makes sense?