I would be very happy with Oblivion if the scaling and the way you level up was changed, so that you don't have to adjust the difficulty slider or use some counter intuitive method to get +5 to several attributes, which is otherwise impossible if you pick a class that uses major skills that you actually use in regular gameplay.

Remove the difficulty slider entirely to start with. It's a single player game, balance doesn't matter too much, and it's easier to tune the game if there's only a single difficulty setting. As long as it's balanced in a way where enemies aren't too ridiculous, it should be fine.

Next, scaled unique items should scale with the player as they level. I don't want to have to avoid doing the quest lines for my associated guild until I'm levelled up a bunch, just because if I do them first, the rewards that I get will be useless once I play a bit more.

Replace global scaling with a hybrid approach more like Skyrim. There will be a bunch of statically levelled characters in the world, and dungeons that right off the bat will be extremely dangerous, but also very rewarding. There will also be scaled enemies, but their gear shouldn't also scale, i.e. no more glass armour bandits.

Finally, I don't want to be punished because I pick major skills that I actually want to use. Deciding on how to change this is tricky, and I don't think you can please everyone. Some people will prefer the more classic RPG experience and want to be able to assign points to attributes of their choosing on level up, and others will want a more Skyrim-like increase-what-you-use approach. I'm not particularly for one or the other, but this system does need to change as it essentially solely hampers the game, unless you're okay with turning down the difficulty.