Yes you can level the normal way. But I wouldn't put much time into it because you never know when you account will be wiped for a new release. I did actually level a char to level 15 the "normal" way. the only real difference is that the mobs don't roam. and they always seem to drop everything they have on them. where as EQLive would drop only random items ect. I really play EQEmu to do the things I couldn't do in EQLive
gotta love getting level 61 in 5 min. not to mention having all the GM items =p Also, expect to solo the whole time unless you have friends to play with.