While I do appreciate the approval, I think I may have lost the topic.... (warning, long, anolytical post follows)
Bethesda is surely not going to water it down again, Oblivion was about as watered down as you can get. By watered down I mean "lacking human ingenuity." They tried to see just how much automation they could get away with in this game (tree placement, level scaling, fast travel, etc.) and we ended up with a game that feels more like it was computer-generated rather than constructed by an impassioned design team. Granted, I'll give them leeway on the trees (why don't you try placing all those things by hand?), but there was just no excuse for everything else, particularly the level scaling.
That was just pure console-catering, thinking the average player would be too dumb to be able to tell the difference between weak and strong, so they did away with the concept completely for the sake of "balance." Reality check, Bethesda, RPGs are the one game that you are supposed to creatively UNbalance. Too much balancing stagnates the gameplay and makes every encounter feel like "more of the same." Did Oblivion have too much balancing? Yes, but it wouldn't have been too bad if the balancing was based off of a system that worked well.
Instead, the balancing took place based on an arbitrary number that really has no place in an RPG like this in the first place. Like I said before, this game has too many ways of playing it for your character's level to be in any way useful to the player or the game. It's just that, a stupid number that adds a false sense of achievement. Achievement is when you best that dragon in that cave over there and win his horde of fine treasures. Achievement is rising to the top of a social hierarchy, gaining benefits and potential riches most could only dream of. Achievement is NOT "ooh, look I'm level 20 now!" Who cares about that stupid number? Well the game does, and it based the entire scaling and balancing system off of it. The result of this is a pointless and broken attempt at balancing every encounter to maintain the challenge.
I don't want to be challenged all the time! There should come a point when the emperor himself would quake in his boots at the mention of my name. There should also be times when I find myself completely out of my depth, having bit off more than I can chew, and leaving me no choice but to hightail it out of that dungeon praying to Akatosh that I might live a day longer. Unfortunately, in Oblivion you have neither, you just have the middleground. I see high mountains and low valleys in the landscaping, but I sure don't see any in the gameplay, it's just a flat plane there. That feeling of progression is what makes your character in an RPG feel unique and alive. It gives you purpose, motivation, and desire to continue playing.
I'll give Bethesda credit, they at least tried to get the motivation part down. The higher you go, the better the equipment you can find becomes. Problem is, what's the friggin point of having glass armor when everyone else does, too? Oblivion butchered progression in favor of balance, and the result was a game where it was literally pointless to progress at all. It should've been the other way around, in moderation, of course. No need for god items.
The level scaling was also means of instant gratification to add a false sense of accomplishment to the people who were too impatient to just sit back and enjoy the show (again, see the console crowd and their million-and-a-half online FPSes.) It was a remarkably short-sighted attempt, as well, it gives the impression that they were thinking along these lines:
New player steps out of tutorial dungeon. He decides to check out ruin across the water.
He wanders in, discovers several skeletal warriors. He starts hacking away, barely making a dent in their hitpoints. They then proceed to ruthlessly crush him.
Instead of thinking "OK, how about I try that one again later," he instead says "WTF?! Stupid game!" and starts whining about it all over the place.
In conclusion, the level scaling in this game was a half-baked attempt at balancing to try to make it more appealing to the crowd who don't understand that the reason we play RPGs is to progress and earn our power. I hope I made my point clear enough.