Agreed. I hated how you couldn't specialize your character as much with the skills, and I hated the leveling of enemies you encounter. Sure lots of people hated Morrowind at the beginning because you could get killed by someone much stronger than you, but that is part of why I liked it, it was more difficult. Oblivion had better graphics, but Morrowind was a much better game all around. Really hoping Skyrim is more Morrowind like than Oblivion.
Oh my god, the leveling in oblivion...i spent a lot of time leveling up a noncombat skill without realizing it would strengthen the enemy with each overall leveling. Needless to say, that character went to shit since i couldn't kill anybody.