I've never had to grind a character. I think some people just have a different idea of exactly what kind of game Qud is striving to be.
Having played quite a bit following the initial steam launch - I really have only two major complaints.
Firstly, the sidebar message reel isn't very good. It's very clunky, and it's pretty damn hard to tell what exactly is going on, and when it happened. Not to mention you can never go back and read old messages (AFAIK) once new messages crowd out their place - so figuring out why you're suddenly on fire or something means you basically have to guess. Having a DF-style report screen, I feel, would greatly help this issue.
Secondly, I personally feel the surface world is waaaay overcrowded with hostiles. I was walking through the hills near the rust wells in travel mode - got lost - and suddenly found myself surrounded by pretty much everything, all trying to kill me and only me. A squad of those hill hermits, snapjaws, baboons - just everything. I died obviously, but it really did feel kinda cheap to me. Literally every screen I ran too was just littered with these guys. I firstly don't think it makes much sense for all these critters to be allied with one another in the first place, and I definitely don't think they'd all be living in such close proximity to each other in such high numbers. Spread out their populations a bit.