[Suzerain of Sheol]

Well, that's one point against Morrowind's lack of level scaling, in that you can get end-game equipment early on if you know what you're doing. It can make the game a bit boring.

Oblivion's, on the other hand, is also boring, as you'll never be able to sneak something special out of the game before you should have it (barring Umbra and her Ebony armor).

Skyrim needs to have some kind of mix of both. I say, let the epic-level NPCs keep their awesome gear, and if you can manage to kill them (or rob their homes, which should be VERY difficult) than all the power to you, enjoy your prize. Random loot, on the other hand, should scale within a range of maybe +/- 5 levels to you, but have higher-level items be rare and a cause for excitement when you find them.