Quest Points Instead Of XP

[HumanFighter]

Honestly, I think you're still overcomplicating things. For most games, "you level up at the end of each little story arc" is all you need. Your players finish clearing a dungeon after a few sessions of work? Level up. They track the kidnapped dragon back to the princess' lair and save him? Level up. If the system doesn't use experience points as currency (ie, 3.5e D&D's crafting, or Mutants and Masterminds power points), there's no much point in that level of granularity.

Taking a few sessions to clear a dungeon? I know you're just giving an example here, but since I'm not so great at running dungeons, so I try to keep it to one or two sessions at most.
And saving the kidnapped dragon from the princess' lair? I see what you did there. That's hilarious.

Honestly, in practice all you're doing is changing the name and adding a complication in getting XP from combat. Why not just move to 'you get a level when the GM days so'?

Quest Points are there because there might be Big Main Questlines that the PCs will follow (or ignore) but there is also Side Quests. Each of these sources of quest points will eventually add up to a Level for the players. How is that overly complicated?