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No the abilities themselves don't level up. I don't think the unlocking aspect of Halo 4 is done very well, but the customization is top notch. The game is very fun. Precious few weapons and abilities seem useless or underpowered, and I doubt they will stay that way.But in Crysis you can level up certain abilities right? I haven't played any Crysis FPS and I only played up to Halo 2.
I fantisize that if ever there's a fighting game based on custom characters then I hope something like that would go into play. So a player playing turtle-style will gain abilities and movesets that suits more of his/her turtle style of play.