Level scaling is completely screwed. 22 levels in and I havent backed out of a fight yet. I have done a huge amount of dungeons, yet i'm wearing bought gear and have been the whole game! I literally haven't found ANYTHING that is useable. I've been using bought gear and standard elven gear I found at level ~10 or something, and now i'm level 22. (edit: I have found a helmet with 10 more increase magicka than what I can enchant myself or buy, so I suppose that's a good find. To monetize it though, the helmet is worth 800 or something if I remember correctly)
Giants are easy, they were easy at level 7 for my mage. Because of the endless tactical opportunities in the landscape surrounding giants, they should be easier than most dungeons while being low level for any mage or archer.
Blood dragon, Krosis and frost atronarch at the same time, by chance, was pretty challenging, but easily manageable for my character at level ~14-15, no particular skill needed. Can admit the fight would've been hairy without the Become Etheral shout, as Krosis came up behind me while I was focusing on the dragon.
Some forsworn mage guy kills me with 1 hit, now that i'm over level 20, when he uses his best spell. It takes a major screw up for it to hit though. Still an easy fight. Would still call this enemy the strongest faced yet though. And now it's just a standard enemy I face it seems, who drops nothing but crap in a dungeon with nothing but crap. Great level scaling!
I've been hoarding potions since the start thinking this would be hard. Yet, I ended up selling all my minor mana and health potions some levels ago, now i'm considering selling all my higher tier potions too. 22 levels in and i've needed them in 3 or 4 fights.
The game obviously has a lot of things going for it though, and I do not regret putting in all these hours on this character that I know i'm scrapping soon without finishing or diving deep into any of the quest lines. Can't wait for mods to come out!
I'm happy for you guys who found challenge with your character builds though. Seems it was easy if you rolled warrior w/o magic or bow+arrow, and didn't exploit blacksmithing and enchanting. I'm expecting challenge with a balanced mage build though, and not finding any is dissapointing.
Also, as a mage i've been using only 4 spells. Healing spell for restoration and Flames, then firebolt and then lastly fireball for killing. Now I only use 2 as fireball is far superior to the two other destruction spells. Other destruction spells as for example fire rune is a complete joke. Only 2 useful spells for my mage, and there's no spellcrafting.