Level scaling has been messed with, time will tell if it's better. It's sort of like oblivion style, except area levels are locked to where you first saw them. Interesting in that you'll never go without a challenge and yet you'll feel the character progression in old areas, but a pity because it seems we'll never walk into a new area and get utterly annihilated, only to come back later and wipe the floor with them.
...huh?
They're going more with Fallout 3's level scaling. Area's have level floors and ceilings. Say a cave's leveling goes from 10 to 15. A level five can walk in there, and be killed by level 10. However, after walking in it locks with the monsters being around 10. So if the level 5 walks in and then out, and then returns at level 12, the monsters' will still be at 10.
A level 13 can walk into that cave for the first time, finding monsters at level 13.
A level 20 can walk into that cave for the first time, and find monsters at level 15.
Also to this thread in general be the posts be before or after mine...let's keep from bashing Oblivion into the dirt...okay? Morrowind had its issues as well...