I'm looking for a mod that sort of makes the NPCs and creatures level up with you like in Skyrim but not forever... and eventually when I hit level 30 or 40, I want to be able to strike down lesser Daedra or puny bandits with ease. Those of you who play Skyrim would know what I'm talking about.

Does such a thing exists yet?

Vanilla Oblivion is so annoying because if you don't micro manage or do major-is-minor, you end up with a weak level 30 guy who still gets pwned by Scamps. You know what I'm talking about.

EDIT: I'm not interested in anything that drastically alters the game. I want to keep it as vanilla as possible, just with the leveling issue addressed. So that means no OOO or FCOM or anything like that. And definitely no lore-unfriendly mods. Sorry I had to put this in an obscene colour, I wanted to make sure it's noticed.

I guess http://www.nexusmods.com/oblivion/mods/45534/ is the closest thing available for what you are looking for.

Wow thanks a lot, THAT is actually ALMOST what I was looking for! You know it's sad to see mods like the one you mentioned being so obscure and unmentioned, yet all of these flashy lore unfriendly mods get so much attention and views... had I not made this thread, I wouldn't have discovered that mod, probably forever! Anyway, I digress...

Unfortunately, that mod still changes way too much than I would have liked, and there are some objectional things it does that I kind of disagree with like handplacing the higher tier gear... but for the most part, it is indeed doing exactly what I'd like it to. I'm just going to take that mod apart with the CS or TES4Edit and only keep the changes I want... for personal use, of course. Hey, it's a start! Thanks again.