Please no level scaling.
It is the reason why I never finished Oblivion.
After killing tons of demons I was unable to beat 2 goblins at once.
Looks like Oblivion had the motto: "The weaker the original enemy, the stronger it has to scale with level."
This completely ruined any fun and immersion.
Why do bandits hide in caves and attack travellers when they have deadric equipment that allows them to conquer the whole city or just buy a palace.
Larian had exp scaling in DD and D2, (exp gain depended on your lv vs enemy level), but I do not expect this in a DnD game with 10 levels.
Have you played Skyrim? Scalling in Oblivion is not as nearly as bad, because you have OP gear that gives you almost immunity to damage types, life steal, status effects against enemies etc.
In Skyrim playing on higher difficulties is only viable if you master the triumvirate of Alchemy, Smithing and Enchanting and craft your own gear, because quest rerwards almost 100% suck.