I am totally with you on the high-risk, high-reward combat. I think that might be one of the main reasons why CoD is so popular among online shooters. It has that "quick-draw" feel to it. If Skyrim could provide even a tenth of the intensity one feels during a good round of CoD like saying "oh [censored], here comes somebody" as opposed to "oh another guard for me to two-shot but he can't hurt me at all", we'd all be good to go. When I play games, I always try my best, even if it is unnecessary to do so. Maybe playing online games against real people a lot causes that mentality, but once again IMO No Challenge = Boring Game.
@ x_death: This is true about the "pure" characters, it really hurts your stats to split things up. If you set him up right, though, a battlemage with good buffs pwns all.
The other thing OP about constant difficulty is the game type. RPGs, AA and otherwise, when of the Sorcery and Swords variety, allow for character advancement in a way that many other game types do not. Part of the games purpose and value lies in being able to see your character grow in prowess and power, and if the difficulty level remains constant in an overwhelming manner, this becomes very difficult to do.
RPGs are not like the old shooters and combat games, (who remembers Commando! lol) or even games like Mario Brothers. In those games, your character never did much power advancing. You might get additional lives so if you got yourself killed you didn't get sent back to the beginning of the game. You might get increased fire power, better bombs etc, but generally the power was in the weapon,not in you. You did not become stronger, faster, smarter, and if you did it was in a very limited fashion (and could often easily be taken back. . . Mario> SuperMario>FireMario + hit by a koopa >arggh back to regular Mario).
The Wizard&Warrior type RPGs are very different. You don't just get better equipment. You become more skilled and more powerful. And because the games are not linear (and thus are far more realistic) when you gain the attributes, you aren't leveling up just enough to take on the new, tougher monsters that you will encounter in the next level of the game, as would be the case in the more stagnant linear game play. Because the game is nonlinear, you can search out the super monsters as soon as you start the game. . . and be completely destroyed by them merely looking at you. . . but you can also build your skills and powers to the prowess of a demigod and come back much later and show them who is boss. If you go back at level 30 to fight creatures who whipped you out at level 2, and find that the still kick your assets just as easily as they kicked them way back when. . . that isn't a challange, that is a travesty of justice.
One of the primary focuses of RPGs is player/character advancement, not setting up an increasingly difficult series of game stages that become more and more arduous and challangeing until the player is exhausted. Open World RPGs allow you to advance from a mages apprentice or a wizarding student of little power, to an enormously powerful and nearly indomitable Wizard or Sorcerer like Gandalf or Albus Dubledore. It allows you to go from being a puny squire, to being Conan or even He-Man. You know as well as I that Gandalf is not going to be beaten down by some rogue gobin. No zombie or werewolf you know is going to kill Albus Dumbledore unless they catch him already in a comatose state. Conan isn't going to be killed by roadside brigands. . . and He-Man probably CAN"T be killed by road side brigands.
In an RPG in this genre your character can become truly Superhuman. Super strong, super stealthy, and SuperPowerful, with Physics altering powers at his/her disposal. You can become much more potent than the average person, than the average enemy, than the average monster. And you are MEANT to be able to do so, if you work at it.
Does this mean the game should have no challanges left? No, of course not. They should be present, but they should also be more rare. Certainly they should not be the norm. As I said in another post, if the end result of you becoming a powerful character is that the game compensates by filling the world with nothing but Balrogs, Sith Lords, Dremora Valkynaz, Storm Giants, and evil superheroes, then all plausibiltiy, even the plausibility of an Alternate secondary reality, goes straight out of the window. As to the entire point of having bothered to do all that leveling up.