I've played Oblivion for countless hours and when the character reaches level 25+, the game becomes very hard. You won't meet any scamps in the gates of Oblivion now - you'll face several daedroths and each of them need some 20 direct hits to get killed. While you do that, you're toasted. I think this level scaling in Oblivion was poorly balanced but luckily there are some balance mods out there, like Oscuro's Oblivion Overhaul that correct lots of these things and tweak the gameplay like it should be.
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