Enemy health and difficulty is what the difficulty slider is for. hardcoe mode is for people that like to do things like being forced to eat, drink, sleep, etc. I involves a whole different level of gameplay and immersion.

Same

Aside from the leveling up box, I like how in Morrowind during the Main Quest those Dagoth Ur message boxes as those were creepy.

I really like the bed system. You wouldn't really notice any improvement in your abilities if you were fighting for your life to escape a dungeon, but it's during those solitary times of meditation when you reflect upon the day and realize how much good you've done.

You're not going to have to worry about the horrible attribute leveling of Oblivion so it's not going to be an issue.

All I know is, I find what was done in FO3/NV to be superior to OB's and MW's way of handling attributes. In fact, I prefer Daggerfall's way even more, and that was just a random +4 to +6 points to add to attributes at your own choosing. The best way of handling this is what was done in GCD/nGCD for MW and OB, respectively. Made it so that your attributes were raised when a certain amount of skills were raised. Most of the math is done behind the scene, but you know if you level your long sword, you're going to wind up gaining more and more strength as the skill rises, along with tertiary attributes on occasion. It's seamless, smooth, and doesn't punish a person.

The way The Witcher dealt with leveling was actually pretty good in this regard. You would find a campfire and as well as rest and craft potions, you could assign talents to improve your physical aspects or your spells and combat styles.

Personally I loved how in Morrowind I would get badly injured in a wilderness fight, I’d just lie down for a week 'till the bleeding stopped.

Maybe if they let you rest anywhere, but actual beds do a better job, whereas lying on the ground you can only 'rest', bed have a 'rest' and a 'rest AND meditate' if you only want to heal or actually want to level up. Making where you sleep a more tactical choice.

I like the way you level when you sleep. Although the way Arena did it with that loud fanfare that could pop up and scare you out of your seat at any time was memorable too.

They say that when you level you'll choose to raise health, magic, or stamina and then pick a perk. If it's not something like, "you can get +3 health but you could have gotten +4 if you raised your blade skill another point", then it'll be fine since there'll be less reason to want to delay leveling.