I had no idea what to expect in Oblivion the first time through (never even heard of "level scaling" back then) and I had my ass handed to me many times over the course of the game. The second play through on any game is going to be easier and familiar - it can't help but be. Your statement that Oblivion had no replay value doesn't hold water though - many people played it with numerous characters. I imagine you were just referencing your own personal thoughts on replay value (which are subjective).