The Dremora in that example was either from a levelled list, or else triggered by a static-placed "trap". The Dremora's weapon was from a levelled list, dependant upon the player's level. No matter what the character's level was, the Dremora itself was still the same, but the equipment could vary. The creature was either static or levelled, not scaled, as was the weapon. IF the Dremora had more or less hitpoints or skills, depending on the player character's level, THAT would be scaling. BTW, there are also a couple of Dreugh weapons in that list, which appear almost as often as the Dwemer ones at low level. Higher quality Daedric weapons begin to appear at some point, but the basic ones can still occasionally spawn even at very high character levels.
Yeah, I know, and it isn't that big of a deal really, like I said I'm okay with some scaling or adjustment to the players level, but at the time I didn't, having been in several flamewars between OB & MO, I had been imprinted with this no adjusting to your lvl whatsoever fantasy of what morrowind was, and so went completely "FUUUUUUUUU" when it happened.
There were a number of creatures, as well as bandits, that scaled in OB. Goblins were the worst example, gaining enormous amounts of hitpoints. You could sometimes kill one with a single weak Flare spell at Level 1, but it took several minutes of hacking away with a decent weapon to get rid of one at Level 20-30. In effect, the player got WEAKER by advancing, in comparison to what he or she was facing. The increase in Goblin Warlords and Goblin Shaman, as opposed to basic Goblins, was an example of levelling.
Hey, I'm not defending OB's handling, it's was a bad solution, you could still get pretty awesome, having played OB extensively I actually don't use enchanted weaponry much because it ends battles quickly, and usually in the same way. Without enchanted weaponry, battle get more drawn out, which gives you time enough to use your abilities. Arrows also disappear when the bow or the arrow is enchanted, and I like watching where I hit the enemy.
There are several ways to prevent players from grabbing all the neat static-placed goodies at low level, or at least make it so it's not "game breaking". Scaling the items (as done in OB) is the WORST way, making it preferable to wait to do quests, because you'll only get a weak version of the reward at your current level and give up the chance of ever getting the "good" version. Having the item itself scale with the player to address that problem is just stupid; why should it change stats just because you do? A much better method is to use a combination of static and levelled guardians of the item. The static guardian(s) make it extremely difficult for a low level character to just waltz in and take it, because the guardian is at least "moderate" level. The levelled guardian(s) keep it challenging at higher levels, even though by that point, the static guardian may present no great threat. A third method is to use the cost of repairs and maintainance of high-end items to keep them only marginally useful to the player character. You can get them, but how long will it be before you need to repair them, and with what money? That way, high-level items would be far more useful to a well established and financially sound character than to one who is still struggling to afford the basics.
Like I said, not defending OB, I've got loads of things I can take a stab at morrowind for, but the whole leveling thing isn't one of them (although meeting high end monsters where there used to be low end can get a little weird), people just usually think there's no adjusting to the player level in morrowind.