dtgreene: That's clearly not true. Try playing a SaGa game, for example. In the SaGa series, classes are either absent (most games in the series) or optional (Romancing SaGa: Minstrel Song). Levels don't exist in the series except in the original SaGa 3. Instead, in a typical SaGa game (whatever that means), stats or skills increase based on your actions in battle. Use heavy melee weapons, and your Strength might increase after the battle (or, in the case of the SaGa 3 remake, during the battle). Cast spells and the stats associated with spellcasting might increase.
It's clearly true. I haven't played SaGa so I can only speculate but here's the rough outline of a "classless" math engine.
Suppose you have five identical starting characters, 10 in every stat. You have 5 weapons -- sword, bow, fire spellbook, frost spellbook, staff -- that allow them to (better) perform associated actions: melee fighting, ranged fighting, casting fire spells, casting frost spells, healing+debuffing otherwise exremely dangerous undead and demons. Doing more of X makes a character better at X.
Suppose there is advancement and a finite amount of monsters to kill. Then you only have this much XP to distribute between skills / stats / characteristics / whatever, and every secondary attack irreversibly penalizes the main attack. Giving a fire mage a sword midgame to have her figure out which end is for business is't just bad, it might be straight-up impossible because you're in a battle with opponents with attack and defense in the vicinity of 100, and going in with 10 is simply going to lose you this particular battle.
If there's an infinite amount of monsters to kill (and perhaps a skill ceiling, or maybe you just want 1048577 in every stat so you write a shell script and leave the game playing itself as a screensaver on a second monitor), then the initial classplosion will be followed by a Big Crunch. It doesn't mean the classes don't exist.
(Developers usually think different classes are more fun so the ceiling doesn't get hit.)
Okay but suppose Fire has a Flaming Arrows spell which creates explosive projectiles with to-hit running off Archery and damage running off Fire Magic and it makes sense for a character to uselessly plink at low-level monsters for a while so she can shoot fusion bombs and be awesome later? Then it's
another class, for a total of six: Warrior, Rogue, Fire Wizard, Frost Wizard, Hierophant and Nuclear Scientist.
We try the same thing with Frost Mage and find out that while slowing monsters and kiting them looks good on paper, it turns out the Warrior can't contribute because she's either getting hit as hard by a slow monster as by a fast one or does nothing on her turns, and Fire Mage can't contribute because fire removes the slow debuff, so frost archer ends up not being a thing.
It's 2017 and there are only 2 types of characters: with classes, and those that suck. And we really can't have characters that suck while better games are being sold at 90% off, and especially not in a game with xp ticks.