I think some people here are making level 2 to be far more difficult than 1. The analogy using learning to walk & run should be used to compare between an absolute beginner (no knowlege of music, can't read notes) and someone who can read notes at a basic level.
In my opinion, composers /songwriters don't write pieces that fit neatly into conservatory (ABRSM /RCM) levels. Can't always assume a piece that is rated at a higher level is automatically easier than another piece at a lower level.
When a teacher wants you to skip a grade in school, you'd think the higher grade already contain the knowledge in the lower grade. If you can manage the higher grade, no reason to spend an extra year learning the stuff you already know.
I'm with a teacher at a conservatory level 3. Many of her students are retired folks learning as a hobby. None of them including myself is planning to take a conservatory exam. What my teacher would do is mix and match repertoire books. We'd be playing an exercise from 1 book at level 3 and a song from another book at level 2. I don't find it a problem playing pieces at 2 different levels simultaneously. There is no rule you have to finish every piece at level 1 before proceeding to level 2. I rather enjoy playing a variety of pieces at different levels. Some of my pieces are at level 5, some at 3. I enjoy the challenge of learning more difficult pieces none-the-less.
I don't think the difference between 1 level and the next is as big as some people suggested.