Yeah, this. Maybe even make a class for each defined tier? So 1-5, 6-10, 11-16 (probably would be better to make it 11-15 though), and 17-20 (16-20 here). Something like Fighter into Knight or Warrior or Marksman, then those into Swordmaster or Sentinel or Sharpshooter, etc.
Come to think of it, having a base class with 20 levels is somewhat of a sacred cow for D&D. If WotC finally pull the trigger on it, it might advance the game quite a bit.