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Say why does no one else mention Final Fantasy 2?

That had stat advancement though no leveling. It had a morrowind type system.

The more you use something the better you get at it. The more times you almost die, the more your HP grow... etc. Your characters evolved.

Of course they countered that by making other things drop when you don't use them taking some of the fun out of it by having counterpoints so you couldn't make effective multi-classes.