Originally posted by Gregomoto:

They actually do matter a lot. The higher the skill the higher the damage output for weapons and the lower the stamina use (bows, run, jumping f.e.).

Often skill levels don't matter, unless you are going to 2 shot an enemy which would otherwise be a 3 shot doing an extra 20 damage doesn't do much, often you can achieve equal efficiency at the low 80s.

Skill points are absolutely unnecessary to beating the actual game though you can beat the whole game at level 0 however you can get to level 100 in blocking using a skeleton archer farm and bow skill makes a big difference in draw back the other skills are just vanity doing 19 damage or doing 25 damage against an enemy with 30 health is still 2 hits so it doesn't do much so ignore the skill points completely they are basically just a KDR.