dtgreene: * Such level segregation makes sense in the game world,
I could offer my personal views, but they would just be anecdotal. Different worlds and systems had different rules, so I don't know how comprehensive an answer can be gotten. I can offer something about the "universal" rules, which you may find helpful.
In the early editions, clerics could only cast up to 7L spells (where wizards could cast up to 9L). Those levels were broken down as follows:
1-2 = gained by faith / meditation
3-4 = given by divine servants (devas, etc.)
5 = given directly by god (demi, lesser, greater)
6 = given directly by god (lesser, greater)
7 = given directly by god (greater)
IOW, if you worshipped a demigod, you could only get up to L5 spells, while if you worshipped a greater god, you could get up to 7L spells (5-7 still being given directly)
These breakdowns affected ingame casting. If the cleric was somewhere in the multiverse that didn't have access to the astral plane, they couldn't get 3-4L, as the servants couldn't reach them. If they were in another "Power's" desmesne, they might or might not get any god spells, depending on the relations between the two Beings (which would also affect the servant spells). So if, for example, a prime plane cleric of a god travelled directly to the home plane of an enemy god, they would only be able to recover spells of 1-2L, because the "home" god would block the "visiting" team. This would put clerics visiting the plane of hostile powers at a significant disadvantage.
It should also be noted that casters were "charged" with power when they memorize the spell, not when they cast it. This is how a cleric could enter a hostile Being's plane and cast powerful spells initially, because the spell power was stored in them... they just couldn't recharge those spells.
* Such level segregation makes sense from a game design perspective.
Bear in mind the devs were making D&D from scratch. It was the first RPG system ever, they had nothing to go on but their own imaginations and inspiration from fantasy authors. Thus, it's obviously going to be imperfect. Then, once the game became popular, the devs were reluctant to rewrite the entire magic system. There were, however, countless suggestions by gamers and devs over the decades for different systems, which people could use if they wanted.
When video games came along they started out using the memorization system that D&D had, but eventually moved over to the mana system. Video games, being one-off productions, are far better able to create new and improved systems than an RPG that's been around for decades. And of course even there D&D has changed, being on what now, a fifth edition?
Currently, I think video games favor the cooldown system. Cast a spell, and then you must wait a bit in realtime to cast it again. No mana or memorization.
The levels of spells are like the level of your character... they're numerical ways of showing how good you are at something, how powerful. We know that a 10L fighter is much tougher and more dangerous than a 1L fighter, and the numbers give us a sense of how much. Think of belt colors in martial arts... it's a form of ranking.
I hope this helped you, and if I can help with anything else, feel free to ask.