Oblivion's basic endurance system is as follows: You character gains 2 maximum health for every point of endurance gained, and upon levelling, an additional 10% of base endurance the character had at that level is added. A per-level bonus is not applied retroactively to all the characters previous levels. That being said, the best way to maximize total endgame health would be to rush to 100 endurance as early as possible by getting +5 endurance at every level, in order to get another 10 health for every level thereafter. Being that every race is effectively the same at endgame (aside from race-specific abilities, some of which are relatively insignificant), each with potentially 100 in every skill and attribute, races like Nord, Redguard, and Orcs, whom start with the highest endurance values of any race, had a significant advantage in this regard. Characters with the Warrior Birthsign had a similar advantage. I know the difference is negligible, but like i said, i'm an idealist.
Now im certainly not about to say that all races and birthsigns should be equalized in terms of endurance, and as a matter of fact, i like the aspect of customization that they afford. The way i see it, bethesda has two ways of fixing this:
1.) Make endurance per-level health bonuses apply retroactively. Instead of incrementing the character's base health by 10% of endurance every level, simply reset the character's base health to endurance * 2.1 at each level after they pick their attribute gains. Or, for that matter, eliminate the percentagewise health gain factor entirely, since under this system it would become less significant.
2.) Alternatively, leave the endurance system the way it is, and modify all other attributes to give a percentagewise bonus at each level in a similar fashion. Attributes like Intelligence would be easy (simply use the same exact formula surrently used for health). Willpower could get a per-level magicka regen bonus (or actually implement the magicka resistance aspect this time, and apply a per-level bonus to that. I've never seen evidence of such a feature actually existing, contrary to the attribute's tooltip in Oblivion). Stuff like strength/agility would be tricky. A separate statistic would have to be implemented that plays a role in weapon damage, and a per-level bonus would have to be applied to those new stats.
The first option was the first thing i came up with, but i think the second one, while more complicated, is better since it adds an additional aspect of customization into the game.
Here is my second issue: level capping. I know that level-capping in the elder scrolls series has been relatively insignificant and definitely not required to beat the game (at least in Oblivion or Morrowind, for that matter. I've not played the previous games).
In Oblivion, there is no hard level cap, but your maximum potential level was limited to a quantity equivalent to 10% of your total potential major skill increases, plus one, rounded down. As such, those characters that didn't pick major skills that were featured in their class specialization and racial bonuses could reach higher levels than those characters that did. Now it's hard to say that characters built in this way necessarily had an advantage, being that everything in the game impacting its difficulty is relative to the players level, but again, idealist here.
It's a little trickier to fix this issue, but i came up with an interesting idea that would both fix this and make the whole skill system a little better indirectly. Make all racial/class specialization/major skill bonuses increase the maximum levels of those skills by an amount equivalent to the value they increase the skill by in the first place. This would effectively set the maximum potential skill gains of all character configurations to 525. Another interesting feature could then be implemented: another skill perk at level 125. These perks would only be available to players that not only picked those skills as major ones, but also receive a bonus to them through class specialization or race.
That's what I've got so far. Feedback is welcomed, and I know I'm not the only person that was ever bothered by these things.