Quest for glory.
final fantasy XI comes to mind
Does anyone actually like this mechanic? It forces you to use weak things to make them stronger, leading into a positive feedback loop where you continue to use the same skills over and over because they're the only ones that are strong. It prevents you from exploring other options, because those skills are much weaker than the ones you've been using for a long time.
It can also be a little bit of a trap, if you start a game with a, for example, sword thats +1 damage, and a bow that's significantly weaker, you rely on the sword until you find a better bow. Only to discover that the bow will always be weaker, because you never found one that's stronger than your sword with skills.
You're the forced to grind...and that should never be the answer.
It does sometimes cause problems even if you're not trying to exploit it, though. I remember in Skyrim I would pick every lock I came across, and after spending a while in one town I hit 100 lockpicking (without ever intending to.) Suddenly every enemy was drastically more powerful than me due to level scaling.It's always hilarious how people misuse this mechanic in Elder Scrolls games and then complain. The skills define the class, not the other way around, so if you specifically make a class that levels from running and jumping, you end up with a level 100 athlete who knows nothing else. And then the game scales to your level regardless, so your character is useless against level 100 enemies.
It's a fantastic way to punish min-maxers.