The leveling system is better in Skyrim because enemies generally scale with you instead of bypassing you. Also, they don't gain the best set of gear at high levels whereas Oblivion every enemy is decked out in daedric or glass at high levels.
This, along with the stupidly designed leveling stat system is my main gripe with Oblivion.
"I just came out of a PIE, you swooning harpy! That is totally bat-**** insane!" - Mehrunes Dagon
I've said that since the game was out. People got way too serious about "Help! I broke my character" and nonsense like that.
It was not only kinda hard to actually get yourself into that situation, but if you've ever played any video game before common sense prevented it. Even if you managed to 'accidentally' destroy your character's chances at defeating enemies, the difficulty slider was so fantastic that you could make the game fit well with any build.
The only issue was the fact that enemies disappeared when you outleveled them. I stand by that fact to this day. I never had issues, and for my first five plays or so I never even knew people were trying to optimize a build, let alone how to go about doing it.
Wasn't the hardest game I've ever played, not by a longshot.
Remember: IamI3rian told ya. Little pig, little pig let me in!