Progression and access to harder content should be based on in-game accomplishments; not power level.
For example, think about this.
1. Beating the story gives access to the raid.
2. Beating the normal version of the raid and demonstrating knowledge of the machanics gives access to a higher difficulty version of the raid with better rewards.
3. Beating that version of the raid gives access to the hardest version of the raid, which drops the most prestigious rewards.
Take Root of Nightmares, for example. Let's say completing the Lightfall campaign gives access to Root. Now, in each encounter, there is a set of triumphs explicately tied to each mechanic (hidden until after world's first, of course), and upon completion of those triumphs and the raid, you get access to the next difficulty.
The next difficulty drops crafting and masterworking materials and artiface armor, but the enemies hit harder, have more health, and there are additional modifiers on. Kinda like "Legend" now.
Upon completing that version, you have access to the "Master" raid. The master raid drops adepts from every chest, high stat artiface armor, more materials, and cosmetics (armor ornaments, shader, ship, sparrow, etc.). It is also guaranteed to drop the exotic. However, this version is even more difficult and has additional mechanics.
You could apply this to dungeons and grandmaster nightfalls as well.
This system of progression is purely based on player accomplishments, rather than some number next to their helmet.
Edit: Yes. In Season of the Deep, the power and pinnacle caps are planned to remain the same. But this does not alleviate the rather monotonous and heavily RNG dependent grind that is pinnacle leveling for new and returning players.
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It’s been leaked that power level will be getting overhauled next season or the one after. I’m really excited for this personally. Power level is not need when we have so many other ways of progression. We already have vendor ranks, battlepass, and artifact leveling.