Back before 1 Tamriel zones was leveled, this had multiple downsides, 1) if you wanted to do all the quests and stuff in zones you would out-level it, this get way worse if you also did PvP, group dungeons or just ran around killing stuff as in grinding.So you never really gain anything as the world adapts to your level.
I guess that is what I dislike about this game. You basically stay still and as you level you are forced to make and buy items to keep it that way.
Even the CP does very little for you. They took out the good stuff in the CP and even made it harder to do things because the resources run out faster.
Character development is focused on gaining skill points, unlocking and leveling up skills, and most importantly learning how to play your character well. You only have to keep your gear up to snuff until you get to CP 160. That is the max gear goes up to. People usually hold off focusing too much on seriously gearing until they get to that point. You can level up to that point just using the random gear you get for questing or crafting some traiting traited gear every 10 levels or so.
Just focus on enjoying the story, getting more skills, and learning to play your character like a pro.