Gaming

If you rise anywhere above lever 5 or so, the difficulty ratchets up so much it makes the main quest nearly impossible to complete.

Didn't Oblivion already have the difficulty slider? You could just adjust that, no?

I know level scaling is a big topic in the industry, but for me, the way it’s implemented nearly ruins what is otherwise a mostly great game.

Two of the first RPGs I played were Gothic and Gothic II which released approximately alongside Morrowind and Oblivion, and they just had no dynamic level scaling at all, so I don't really see the appeal either. A tiny Mole Rat being roughly the same challenge as a big bad Orc just breaks immersion. If you were to meet the latter in early game it would just curb stomp you, which provided an immersive way of gating content and a real sense of achievement when you came back later with better armour and weapons to finally defeat the enemy who gave you so many problems earlier. Basically the same experience you had with Death Claws in Fallout New Vegas when compared to Fallout 3 - they aren't just a set piece, they are a real challenge.

The games had their own problems, for example the fighting system sucked, and I'm told the English translation was so bad the games just flopped in the Anglosphere, putting them squarely in the Eurojank category of games. But creating a real sense of progression and an immersive world were certainly not amongst their weaknesses.