It's an interesting ideal but it doesn't have much basis in reality. People like bars. They enjoy moving towards and visualizing a very simple goal. Trophies, achievements, nearly every multiplayer game in the last 7 years, language learning tools like Memrise, LinkedIn, Dropbox. They're all based on completing tasks and moving up a couple percentage points towards the big 100.
What if there isn't a scaling algorithm? What if difficulty is set in stone from the beginning, regardless of your stats? And then items gave you a small boost to damage that bypassed scaling?
Oblivion seems to have ruined concept level scaling for everyone. It did level scaling poorly, because it was based on your level (instead of your combat abilities - speech and athletics aren't going to save you against a Troll) and it was visually presented through gear (awkward bandits with fancy Glass Armour).
I don't expect the scaling to be based on your stats, I fully expect it to be based on your character level/party average. Like I said in an earlier post, if the scaling is fairly minimal and you can compensate through gear and other ways to boost your stats without leveling up then it could be tolerable.
I still think it's just not a very good way of dealing with difficulty in rpgs. Just have different difficulty levels that are balanced for a certain character level range and have those be fine tuned individually, different enemy variants and mixes can be introduced instead of just throwing more of the same dudes with scaled up stats.
I do agree that there is a range of implementation quality with something like Oblivion being the absolute bottom of the barrel, I'm still buying the game and I'm sure I'll have fun with it but it's disappointing to see them use scaling.
Playing Dark Arisen recently really made me appreciate just how much fun rpg mechanics can be in an action game when implemented correctly. The new dungeon on Hard was very challenging at first (people even speculated there might be scaling involved) but the more gear you get from that place the more you start annihilating stuff, there's still skill involved and you can still die even with great gear but the feeling of empowerment is just fantastic.
To me that's the balance that action games with rpg mechanics should strive for. Never become a total cakewalk in the endgame areas/difficulty modes but definitely have some noticeable breakthroughs in terms of power vs enemies. It's just incredibly fun and satisfying!