"I am the one and only hero of this world. I should be some kind of badass walking pwnage-machine. Any limitations in my skills are taking away my rightful freedom of crushing anything that looks funny at me."
Exxagerated as that may be, I realize most of us will feel in a similar way, because we might think that this is what an RPG is all about after all: getting stronger and all that. Let me clarify that my interpretation of what a RPG actually means, is only to pretend to be a different person in a different setting.
It doesn't imply having to be the superstar of that setting, it doesn't imply having to get stronger at all - although some character development is usually considered a given.
My thoughts on why this actually could be a bad thing:
Wanting to be the center of attention or being a I-can-do-it-all-perfectly is not something I consider very natural.
We may enjoy hardships when we can overcome them, but sometimes real drama is made by not being able to overcome those hardships and still finding a way to deal with it.
Accept the fact that some challenges in life are best avoided. Experience the implications of not being able to rescue that damsel in distress.
What would have happened if you couldn't save Martin Septim in time? Doom the world (and yourself - because otherwise you'd only be villain instead) and give it your best shot - see how long you can survive against the invading daedra armies.
The mentality is also belitteling the environment, lore, and especially the opposing NPCs.
Because we are not talking commoners, bandits, soldiers or regular monsters here.
Cities, kings, lichs, dragons, and halfgods alike - no one is safe from the greed of the player in a TES game.
When were you last struck in awe after encountering these things? When did you face a strong enemy in Morrowind and didn't think "Meeh, so I'll just come back in an hour and kick your ass"?
How much pride can you feel about beating something that was meant to be beaten? There is no possible failure - every obstacle only means a timely delay. Trudging around the world and grinding rats for one more hour is the idea of a challenge nowadays.
Take Skyrim's dragons for example - and how little respect players have left for the challenges in a game.
Some time ago you would normally have considered taking on a dragon as serious business. Yet on these forums the cry for fighting multiple dragons at once is not such a rare sight.
Now, I wouldn't suggest to make Skyrim a harder game in general, as I can accept that not everyone may agree with my principles.
Some people lately had ideas about making optional challenges: High level bosses that will not stand in the way of any important quest, just loitering around in some remote cave and waiting for the most daring players. This is not a bad direction but I can only partly agree with that - because it still means these are enemies that are meant to be defeated - even if only by very skillfull players.
But I say go one step further - if some players like to be reminded of their place in the world, then add a few credible opponents for this as well, which are so way above your head that defeating them is not in the realm of possibility anymore. They can be encountered but require that the player adds a few rational skills "behaving unprovocatively, bribe or avoid" to his skillset (crush or crush later). Otherwise enjoy all hell being let loose - on yourself. And the best reward - if any - being to survive and escape without losing more than an arm and a leg.
Please discuss.