Another problem was monster HP progression, which scaled faster than item progression. In short, monsters always became tougher even though you've gotten better and better gear, you were falling behind anyway.
In conclusion, the best way to play Oblivion was a really awkward and unintuitive one I am sure most of you are aware of - it would involve picking major skills that you would never use, holding back your leveling progress as much as possible etc.
Have devs confirmed in more detail how they plan to address this in Skyrim?