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No, it is the way levels are implemented that can encourage or discourage RP.
Levels are not unrealistic, because they have countless direct analogues in real life.
Levels are no more realistic or unrealistic than skills or skill points. Levels are an abstraction, just like hit points, skills, skill points, stats, and tons of other things that are used in RPGs. Sometimes they are used effectively, sometimes they are not. But the core concept is not what deserves the credit or the blame for encouraging or discouraging RP.
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