Oblivion's level scaling sucked, but the difficulty slider counteracted it... I felt no shame in taking the difficulty down a notch or two (there are LOTS of notches) if the monsters started getting too hard. The scaling was broken, if you leveled off of non-combat skills, all of the monsters leveled up as well, with combat skills.
So far, Fallout 3 is amazing. There's really no question, F3 totally surpasses Oblivion in my eyes.
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