Enemies, loot, and situations that scale to your level are a great idea. But alas I hate it. Everything is so hard at level 12. It's like my level doesn't match with my skills. I [not my character] suck at fighting. I did the first arena fight at like level one, it was easy as pie. I just went back as level 12. Damn opponent runs out with a glass sword and a mithril shield and shoots a fireball at me. I eventually killed her by using my acrobatics to jump onto a high up ledge [which was kind of glitchy and cheating] and fired arrows into her head.
Everytime I get hit by anyone or anything it takes like half my life bar away. I'm almost positive my character isn't broke because I have tons of strength and the rest of my stats are just great too. I don't understand why I get my ass handed to me so easily. Oh god I won't even go into what happens if one of the trolls pop up in the woods...
Also I finally decided to close the first oblivion gate but now all the monsters are so hard because of my level I keep dying over and over.
THE GAME IS HARD AND IT MAKES ME SAD AND GLAD AT THE SAME TIME
Morrowind was so easy, like after level 9 you are basically god, and I guess I came to enjoy that.