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Player2 said:

Gaining AP at the cactuar island is actually faster than at other normal battles and more AP earlier is not needed because the game is very easy this way. Besides, if more AP is needed you get Seifer very early and bosses give APs too.

The problem with EXP is that I think that a good game must be fun to play when you're playing to win. Yeah, complete lack of balance is another problem FF VIII has.

That's the thing. VIII is fun while playing to win. Enemies escalate just so that there's always a constant sense of challenging, in the same vein your characters level up and become stronger; at no point the game gets unfair (especially not if you take into account Junction/Refine) except for, perhaps, Omega or Ultimecia. The only complain I can get from not wanting to level up is that you want the game to become a breeze at one point, rather than keep the difficulty throughout. It's the same principle that other games have applied, like Elder Scrolls: Oblivion. It's not a bad concept at all, unless, yeah, you want the game to become extremely easy at one point.

All Final Fantasy games feature lack of balance at one point or the other. VIII's only issue is that it takes easier to get there than the rest, but that's pretty much it.