Yes, this is correct, but at the same time, it seems to be easier to gain 25 levels from, for example, 600 to 625 than it is to go from 120 to 121 on a melee skill. Although there is no maximum level or skill, it seems to me that after a certain point you will not actively skill up as much as level, so in the long run the level impacts your damage considerably.
On the example I gave before: the level 250 knight has a 509 max damage and his level is only 9.8% of it, but a 600 knight has a 629 max damage of which 19.07% comes from his level alone.