And yet, that's one of the things I found annoying about Oblivion - everybody leveled when you did, so the mobs were always hard to fight, sometimes even more so. That kind of broke the game for me, because that meant everyone from petty thieves to town guards were as powerful as me, if not more so! Why would they be? Think about it, when you started off, one of the missions was to take down a witch in a cave, and the first time I tried it, I had to run away screaming like a little girl! But I figured when I was a few more levels up, I'd show her! Well, when I did level up, so did she, the rats, etc... so what's the point!? Challenge is one thing, but there's a state of mind in an RPG I think which is if you're the main protagonist going through all the hoops and drama to become the uber champion to beat the big evil, it defeats the storyline if every Tom Dick and Harriet also is as powerful as you just for the sake of it being a challenge. In which case what's the point of you becoming powerful, even the Town Guards can take down the mighty evil!
Sigh, ok I'm ranting, but I have to say it appeals to me if the game lets me become the uber champion through trials and tribulations, then yes it's going to be easy for me to return to that dungeon or that cave and say to that baddie, "Hallo. I've gone up 6 levels. You killed my minions. Prepare to die!"...