They fixed the balancing issues that Morrowind had. Unfortunately they fixed it a little too much in my opinion...scaled leveling sucks, but it's not too bad. You shouldn't be finding anything to make the game trivial though.
Oblivion has already produced tons of great memories in the week or so that it's been out. Here's one where I had to kill some people in a house for a quest, and I shot this guy in the back with an exploding ice arrow. He flew halfway across the room onto the top of a dresser:
http://www.mitsenf.com/img/dresser.jpg
Another time I had to assassinate an old lady and all of her kids. Well, I snuck up on her in her sleep, and I fed on her because I'm a vampire. I forgot to go back into sneak mode, and I attacked her without the sneak bonus, so she didn't die in one hit. She got up immediately and ran outside the house. I walked out the door and saw her bolt straight into the front of my horse, who reared up on its hind legs and gave the lady a face full of hoof, finishing the job for me.
There's so many awesome things in this game, I've never been so addicted to a single player game.