Dude, I called that shit out when I was 8 years old as being ridiculous.Also, they should get rid of level scaling, since daedra invasion consisting mostly of stunted scamps is pretty silly.
Pal, I played it back when I was 10 old kid and every other playthrough after first one (when I familiiarized myself with consequences of leveling up) I played it as if it was game of Invasion of Body Snatchers and stayed as far as I could from any bed. If it was to me back then, 10 year old kid with no prior knowledge of RPGs (target audience), weird how the Hero of Kvatch and Champion of Cyrodil all of the sudden is raped by single gmo mudcrub and bandits wear daedra armor after closure of all the Oblivion gates (maybe they held a sale afterwards) then how nobody from Bethesda's mythical QA noticed anything?
Not to mention that cooler wildlife like Daedroth and Minotaurs only spawned and populated game world after you would reach certain level. Genius design.
Level up icon was always in the corner of my screen. Not leveling up was better than leveling.
Cultural Bethesdaism - responsible for every bad game design in industry - from level scaling to horse armor dlc to now paid mods.