Of Bethesda's games, the best difficulty scaling was definitely Fallout 3. By that, I mean you can definitely find your self in dangerous situations(like being spotted by sneaking up on a Deathclaw) where death is a possibility, but you can still deal with situations like that. It was not without it's flaws. Until Broken Steel came out, the only enemy the really posed a threat to you was the aforementioned Deathclaw(and one can argue the Super Mutant Overlord was a tad too powerful) and with the right perks and skills, V.A.T.S. was so powerful you could kill off a room full of NPCs before any of them drew their guns.
Oblivion was fine up until level 30. At level 30, the leveled monsters started appearing, monsters that have extra HP and deals extra damage based on your level. The problem with this is that by the time you hit max level, which is minimum 51 for most characters, nearly all monsters deal more damage than you do and have more HP, while you probably reached your max damage at level 30. Of course, this could be corrected by lowering the difficulty slider.
Morrowind was fine up until around level 25. Then it became the opposite of Oblivion. Instead of the monsters becoming more powerful, they stayed the same and you became more powerful. Much more powerful. By the time you hit max in Morrowind, which is minimum 70(highest NPCs are around 35, and you usually don't fight them), your armor makes you practically invulnerable, your health is almost godly, you have healing spells to undo what little damage you withstand in a flash and your sword kills all but the toughest enemies in one hit.
In short, Oblivion made the monsters too powerful, Morrowind made the player too powerful, Fallout 3 was a decent compromise.
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