Something i really liked from a Super Nintendo classic RPG favorite of mine "Earthbound", was that once you become powerful enough, lots of the enemies could sense your power and started running away from you
example from Earthbound:
-Ness (the main character) is low level, and gets attacked by low level "stray dogs", "crows", and "coil-snakes"
-Ness walks through a "dungeon" facing many difficult foes on the way to the end-dungeon-boss leveling up a couple times on the way.
-after Ness reaches the end and beats the boss, he levels up again and he gets endowed with a very powerful ability.
-after leaving the dungeon the "stray dogs", "crows", and "coil-snakes" now realize his higher level and new power, and run away on sight.
I would feel pretty powerful if, after defeating all the dragons and saving skyrim, simple bandits recognized me or noticed i was out of their league, and just ran off; if wolves and bears that once attacked me and caused me harm, now run away and clear the forest when i arrive; if cliff racers just stayed up in the air.
Omicron Zero came up with pretty good stipulations for how something like this should work in TES.
For 'People'(Civilized Races):
-First of all this should only apply to 'wild' enemies- like a roving group of bandits- and not quest-specific or 'nest' (in their hideout, etc) enemies.
-It could be applied in a different way to townspeople. I always find it strange when I walk up and brutally kill a guy in town and most people try to attack me, shouldn't some people run? Like, not just for guards, but for their lives.
-The major defining factor should be your Fame, Infamy, and 'Renown' (Fame + Infamy).
-The minor factor should be your [equipped] equipment.
-At an encounter the NPCs (henceforth referred to as Bandits) should preform a check to determine a Risk vs Reward type value.
--If your Fame and Renown are high as well as your equipment rating, the Bandits are not likely not attack.*
--If your Fame and Renown are high but your equipment rating is low, the Bandits are almost certain to leave you alone.*
--If your Fame and Renown are low as well as your equipment rating, the Bandits have a good chance of attacking.*
--If your Fame and Renown are low but your equipment rating is high, the Bandits are almost certain to attack.*
--*All Bandits should spawn with the chance for a random modifier. For example if they spawn as 'Desperate' then they will always attack, if they spawn as 'Cowardly' then they will only attack low/low types, etc.
--If your Infamy and Renown is high then there should be a chance that the Bandits will attempt to 'recruit' you (give you a Radiant Story type Quest to rob some people or something) or trade with you instead of attacking. (Basically they should be friendly- to a point anyway).
For Animals and [Unintelligent] Monsters:
-As far as animals, some should by default be more weary of humans.
-Unlike for 'People', aggressive animals should always attack. However they should still be able to flee.
-Weaker/Lone animals should be easily spooked by magic, Dragon Shouts, and a person fully garbed in threatening/inhuman armor**.
-After losing a certain amount of HP/Comrades even some stronger animals should have a percent chance to flee.
-Monsters should follow most of the same rules, but be more aggressive by default and have modifiers like the 'Bandits' above (Cowardly, Determind, etc.)
**Let's be honest, most people/creatures/life/everything should be near terrified of someone in a full suit of glowing, enchanted, Daedric Armor.