I am of two minds about this.
On one hand, Valkyria Chronicles - which quite deservedly had a reasonaby high spot in the recent RPGCodex poll - is one of my favourite tactical RPGs, and the character advancement in that game is notably disemphasised. Not
entirely so, but for all practical purposes, enemies level up roughly the same speed as you do, and you level up classes in bulk, so you barely notice the character development, and when you do it's not necessarily a good thing - for instance, the entire sniper class is almost entirely useless for the first few missions because it takes a while for their aim to improve, which doesn't really seem intentional so much as an oversight in the system. Generally speaking, the character advancement and gear purchasing and whatnot is almost entirely vestigial, and that's just as well, because that puts the emphasis on the fabulously designed individual missions instead, which suffer not in the least bit for the fact that they're populated by the exact same enemy types over and over again - the fun is in the map layouts, not facing new types of enemies. Then again, Valkyria Chronicles is largely an environmental puzzle game that happens to have some RPG slapped on top as window dressing. Which, honestly, is probably a good thing: I was very frustrated by the PSP remake of Tactics Ogre, which gets progressively less fun to play as you go on because you keep getting new cool characters with interesting special classes, except that they all start at level 1 so you have to grind them up before you get to use them.
Having said that, there are some functionally perfect games that feature exponential zero-to-hero growth. Almost every dungeon crawler uses this structure, and for a very good reason - the essence of a dungeon crawler lies in taking calculated risks to attain rewards, and ultimately, purely vertical character advancement is insufficient to provide meaningful rewards, or, for that matter, to punish the player for failure.
This article, which I really like, explains this rather well, but basically this type of traditional RPG requires grinding, if for no other reason that being
forced to grind is the ideal punishment, and being able to progress, and gaining equipment and resources that make it possible, is an excellent reward. And none of this works if growth is too gradual or carefully plotted, either - a new fancy sword is rewarding
because it can oneshot enemies, as is reaching a new character level and getting a spell that can obliterate enemies that gave you trouble two hours ago. Making previous consumables and equipment obsolete is, in a way, not only necessary but the whole point. The ideal progression is the combination of vertical and horizontal growth;
incline, as one might say.
This is also why I think one cannot entirely discount the merit of repetition. Games like these wouldn't work without it, because they need a certain amount of room to feel the results of decisions in. And it's
because the punishment and reward exist that all the decisions made in the game have weight and merit, which renders superficially repetitive combat encounters fascinating. With repetition, the player progressively becomes more and more aware of the game's mechanics and more precise at gauging the strength of his characters against monsters, at which point introducing new mechanics produces interesting complications. I've spent enough sleepless nights playing FTL that I'd be lying shamelessly if I were to say that repetitive gameplay couldn't be a great deal of fun.
Ultimately, it comes down to the fact that these are two different types of games that happen to use similar mechanical overlay, so people think of both of them as RPGs. However, more fundamentally, one of them is akin to a puzzle game, while the other is a kind of gambling. There are probably more types of RPGs than these two, but these are the ones that really embody diametrical opposites, in my mind, so I think it's crucial for the developer to have a good sense of which one (if either) he's going for. At any rate, both are valid principles that have a lot going for them.