Not quite true. You must not forget the 3 HP you gain per each level above 1,000.
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Pre-1k, yes.
Post-1k you get no additional boosts in health, armor, damage...nothing. Every single watch level up is the scavenging option you have now; each SHD point can be exchanged for materials, or an SHD calibration, etc.
After you hit 1,000, additional boosts in anything can only be obtained via re-arranging your builds and optimizing every piece.
Exactly. Insidious onset. 400 levels equals 1200 HP, which equals nothing. It doesn't even compensate for the amount of brain cells you lose listening to Hyena banter. However, it was the main impetus behind cheaters using XP glitches to attain astronomical SHD levels. At SHD 100K, you have 300K bonus health, which could give a mushroom the edge to stay vertical in a PVP engagement.
Dark, speaking matter-of-factly, and without attempting to trivialize your accomplishment, the majority of active veterans in the game are in the 3-8K range. We presume anyone in the hundreds (esp. low) to have purchased within the past couple weeks, and to have gleaned their knowledge vicariously from youtube.