I wouldn't suggest not ever sleeping and staying at level 1. Anyway, once I maxed out all of my stats, I just stopped sleeping.
I also did quite a bit of artificial levelling of minor skills so that makes me stronger relative to my enemies as well. Creating a race/class combo with high endurance and then maxing out endurance first will yield high health points relative to your enemies. #6 Can you not scale the difficulty level toward easy in case you have to get past a difficult encounter? Or does that just feel so dirty? :o I played the game on Xbox360 and did most of my levelling 'artificially' by choosing major skills that I could limit the use of and so whenever I did level up, I could add +5 (the max amount) to my stats.