Oblivion had had the potential to be the greatest game ever created, but unfortunately that awful scaling kills all the fun.
I don't think it is fun to kill a goblin with 2-3 weak fireballs when I am at level 1, and to be unable to kill the same goblin type with 8d blade when I am level 10. It is just frustrating.
It is not fun that a fighter with strength = 90, endurance = 90, blade = 60, block = 60, heavyArmour = 80 and blade with damage 13, is not able to kill a single frost atronache.
It is not fun that 80% of players time is wating, waiting and waiting for magica to restore in order to restore health. After each single fight.
Something is very wrong with this game, I am happy I didn't pay for it but took it from a friend, who, BTW is very disappointed and not able to play it just because of the same problems. Morrowind was much more fun to play. Gothic 2 style of scaling/balancing is also almost perfect, hope it is the same in Gothic 3.