Not early on, no. But that sort of thing can be fun to do at times, especially on modern game engines like what we have now. Morrowind's problem was that it was too easy to be able to do that. It should be possible, just not right away. Having ridiculously high magnitude spells (enormous explosive fireballs, jump spells that would make superman jealous, levitation, enchantments to make yourself fast as hell etc...) can be a lot of fun. If it's too game-breaking for you then don't do it, but, again, if it's something that takes a long time to build up to and you can do a lot of cool, powerful stuff with it, that should definitely be possible. It just wasn't balanced properly in Morrowind, and by that I mean, again, that it was too easy to attain.
Great generalization. Obviously you're smart. I don't think anyone had a problem with the difficulty of level-scaling. It was more about the ridiculous tediousness that came with it, and the requirement to level up a certain way and be more careful about your skills. It took away a lot of the freedom of playing the game how you want, which Morrowind had a lot of. It also broke immersion where, instead of having better AI and being better combatants, NPCs just had crazy good armor that was inappropriate (highwaymen with full glass armor, for example), and more health. And more difficult opponents as you got stronger didn't just mean that they were harder, it meant that you'd be playing the same block + attack or evade + attack game over and over and over and that it would take much longer for the enemy to die. That's just stupid. People say Oblivion's combat is better than Morrowind's. It's not. The Combat SYSTEM is way better, but the combat experience is just as bad, if not worse, due to stupid things like that. What's the point of having a big sword if you're just gonna end up slashing the same opponents with it for minutes at a time? Combat can be quicker and still be more difficult. Bethesda just handled it REALLY poorly in Oblivion and that's what our complaint was. I love Morrowind, much more so than Oblivion, but I do prefer the rush of knowing that there are still things that can kill you later on, I just wish that kind of thing was decided in less than an hour. Kind of loses its intensity after that amount of time.