Some monsters will cast spells at you, yes, especially Goblin shamans. Daedroth wizards also cast spells. The one I found really annoying was the guy with 100 athletics who casts invisibility, runs away, then casts lightning bolt on your ass, casts invisibility again etc.
I'd chase him from time to time, but he ran twice as fast as I did. VERY infuriating (though a good example of spellcaster AI).
The stupid part of the thing is that, I have 11K gold. What do I have all this gold for? Merchants will NEVER have anything better than what I am already wearing. There isn't a legendary smith somewhere with 50K items. When I reach him, he'll have Level(my level)Items. Which is what I'm already wearing, because that's what EVERY SINGLE FUCKING THING IN THE WORLD IS WEARING!
A highwayman tried to rob me a few minutes ago, he was wearing FULL DWARVEN ARMOR. That's like a 4000 gold set, and he wants 100 gold from me! That's just fucking ludicrous. Even though the Xbox360 is more powerful, game are still being fucking dumbed down for it.
Back to my Plane of Oblivion dilemma, there really isn't anything I can do. The clannfears just waste me. There's no point in leaving, levelling up a bit and coming back, because the clannfears will just level up as well.
There is also no point in hoping to come back with better items, because the BETTER ITEMS DO NOT EXIST, BECAUSE MY LEVEL ISN'T HIGH ENOUGH.
How the fuck does a game designer not see the stupidity of this? I'm trying to do a quest which has become TOO DIFFICULT because MY LEVEL IS TOO HIGH. (It's the classic Final Fantasy Tactics syndrome. Anyone remember those level 70 Red Chocobos? That would just Meteor your party into hell on their first turn? That's what this is too.)
So what am I supposed to do? I can't go levels down! I finally wound up turning the difficulty slider all the way down, which lets you wade through the game, but that's a stupid fucking solution.
After you close the first oblivion gate, you have to attack the town and break the siege. Me and the five NPCs go in there.
We face FIVE ClannFear, TWO Daedroth (like huge fucking lizards that do about a BILLION damage per blow) and two Daedra wizards.
It was almost painful to watch the NPCs get slaughtered. I'm talking about 3 seconds tops to watch that horde slaughter five NPCs.
Erm, okay? Now they're charging at me. I cast my one 35 points of damage spell, it hits one of the Daedroths, his bar doesn't even fucking MOVE.
SLASH CHOMP MAUL REND SLAUGHTER.
GREAT FUCKING GAME DESIGN THERE, BETHESDA, YOU FUCKERS!