Of course - but it would still have to be finite. The game reads the experience needed to level up and the characteristics of the new level from a series of tables. If you go beyond that, your character breaks. See here for an example.
However many levels you put in the tables would work. Anything beyond that wouldn't.
im pretty sure that the game engine itself has a hard cap of level 50, even if you add more lines to the appropriate .2da files i don't think you can grow to those levels, and if you tried it might mess up your game ( your levels might actually loop and instead of growing the level 50 you might grow to level 0 or 1 or the game might crash )
The spells not strengthen after 20 levels if you not modify them so only high level abilities and hp increased over the more levels. Its not much benefit but breaks the game levels. I liked instead the iwdee way, to reach level 30 in all you classes if you have multi, like fmt 30/30/30.
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However many levels you put in the tables would work. Anything beyond that wouldn't.