

It makes sense for things to level in an open world game where someone could encounter an area at level 1 or 10. In order to provide a reasonable challenge for the player coming to that area. What oblivion did wrong is it was far too global and there weren’t sensible caps and floors on areas.
Fixing the level system so you aren’t punished for using major skills regularly is a really good change to the system. Managing a spreadsheet to level efficiently was always a huge negative.