They're considering the idea of a level squish, because they can't give you something everytime you level because you would then get 120 of something and then it would be something like 0.3% improvement. It would be cool if every level you earned would give you a reward, instead of levels that currently give you nothing.
buffed: In the last Q&A, you considered the idea of a level squish, which would be a good idea especially for new players, who might be pretty discouraged by the hefty 120 levels. Have you ever thought about introducing a system like Guild Wars or Elder Scrolls Online which do not have real character levels?
Ion: We've been thinking about similar features before, and we've already made some adjustments to WoW in that respect. In Legion, for example, players could decide in which areas they would start leveling and scale the areas with the character's level. At the moment, however, we are still hesitant to implement systems like those in Guild Wars or Elder Scrolls Online.
A big part of an RPG, even an MMORPG like WoW, is the character progress and the feeling to become stronger with your character, to return to old areas or dungeons and be more powerful there. We do not want to deviate from this essential part of an RPG.
We are aware we have gone a bit too far in scaling the world and we had more than one look at leveling itself and the meaning of levels in WoW. For example, in Legion we levelled our artifact weapons, but our character didn't get anything new from level 100 to 110. Players did not get any new abilities, nor any new talents, and in BFA they even got weaker instead of stronger with every level increase.
Yes, a level squish would be interesting, especially for new players. But we rather want to get back to a point where we can say "every single level affects the character". Filling the XP bar, the glaring light effect during level-up, and the lettering for a newly learned skill are fun in WoW. We have moved further and further away from that over the years, so it is something we want to change.