The new content is decent, and while the levels could be good, they're really just kinda annoying. LEGO needs to include more to the levels, to give a better insentive to continue playing the game. Maybe restrict certain areas until you level up, unlock more weapon slots, or pretty much just upgrade your minifigure. The update was on the right track, but it still needs some major improvement.
Areas are restricted by skill, for example you can't go to Crux Prime unless you've taken the missions from Duke to defeat a Dark Ronin and Pirate Admiral. And even Nexus Tower is blocked until you at least finish the mission to become a faction member. Also Rank 2 and 3 gear now have level requirements, so I've currently go the Rank 3 Shinobi book but I'm only level 23 so I can't use it. A lot of these things were recently added and if you're an existing player it won't affect you. Upgrading your minifigure is done through new gear, and those now have level requirements on them so there is incentive to level up for that reason. I'm sure the leveling system will balance itself out with the rest of the game more over time, just like any new system introduced.