Then you weren't here on the forums back in 2002 and 2003. The game gets very easy when the player become 25+ or so, and there were huge amounts of complaints about how the game was too easy. Things got a bit harder with the expansions, but only slightly.
So with Oblivion the goal was to make the game challenging no matter what level the player are, but that approach had some flaws too.
Correctly, Morrowind level scaling had some basic flaws, first the lack of high level content. Few enemies was past level 20. You had pretty easy access to high level content; far easier if you followed guids or this forum, this made the game easy from around level 15.
Npc was not levelled, your typically bandits in caves was level 5-10 and had iron daggers at level 25, you had to feel sorry for them as they run into your daeric longsword, however they also had crappy loot so it was no reason to hunt bandits.
The Morrowind advanced mod gave you high level enemies for random encounters but not high level npc. It also rebalanced the loot, no more daeric weapons from all golden saint but daedra lords had a very small chance of dropping daeric armor who was extremely very rare but you run over with daeric and ebony weapons at high levels.
Oblivion tried to fix this but overreacted, enemies are to close to your level, would prefer more variation both individual enemies and locations, another overreaction is to many enemies with good equipment at high level.