Indeed, that's what I'm doing. I went around and did all the CH.1s, now I'm working through all the CH.2s, and then I'll move on to all the CH.3s (and so forth). I know it's not optimal but it's enjoyably chill. H'aanit is my main and she just hit 40. Other characters are mid-20s to mid-30s so at some point I imagine I'll be overleveled for some of the content. I kind of already am overleveled.
The story chapters are quite short and I like it that way. You're only committing about an hour (tops) to go through that quest. Since it tends to be equal parts story, dungeon, and boss-battle it doesn't feel like a chore at all. The boss battles are really good, too.
I've spent way too much time on stealing, Scrutinize/Inquire, leading people around to complete their quests, capturing monsters to get better Beast Summons, levelling up sub-classes, doing the optional dungeons, etc. etc.