The biggest problem about level scaling is that there is no sense of accomplishment. You'll also be able to finish the enemy if you didn't completely screw up during leveling.
I think the reason for including this is mostly because gamers nowadays generally lack patience and will drop a game if they die more than two times on an encounter... and then go to a game forum to loudly proclaim how much the game 'sucks'.
What I like about open-world games like Gothic 3 and Risen is this game features high-placed content and the possibility to run into powerful enemies from the very start, meaning one should first become stronger before even trying to tackle them.
Abysmal voice acting aside, even Two Worlds is better in this regard than Oblivion.
