What do I have all this gold for?
Houses and horses. If you want to buy all the houses in the game it'll take quite a bit of gold. Also the best horse, other than the unicorn, costs 5K. Typically horses last you a while, but I still probably went through three over the course of my first game.
There's no point in leaving, levelling up a bit and coming back, because the clannfears will just level up as well.
Get your level high enough and the clannfears basically go away. I found some of the higher level daedra (like the daedroth, spider daedra and Xvili) to be considerably easier than the lower level ones.
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.
Yeah I've always been curious how anyone would manage to break the Kvatch seige at a higher level. I was barely able to do it at level 7. That's probably one of the hardest areas. Oddly enough the final area, doesn't seem to scale as closely as say the Oblivion gates do and is a result a hell of a lot easier than the quest where you have to close like 7 gates.