Level design with static meshes

Development Platform & Builds Debugging, Optimization, & Profiling
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The way it’s usually done is :

  1. block the level out in BSP, test size/scale/distances.
  2. test things like basic lighting, pickups and game mechanics
  3. Add base static meshes and start of the beautification of the level and material passes (this is a iterative process).
  4. Finalize mesh placement and materials, add finalized lighting.
  5. Add particles, atmospherics and detail lighting.

The entire level can be done in BSP or meshes, take a look at some of the demonstration levels/content examples as to how they are done. The shooter game is a good example of this, with both an entire level made of static mesh and also one which is 50/50 mesh/bsp.