I didn't want to quote the long exchange before me but I just want to chime in and add that I had no problems with Oblivion's fast travel and Level scaling.
For fast travel, it just came off as a little "immersion-breaking" for me, because you're allowed to just JUMP to a PREVIOUSLY VISITED location as if fast-forwarding the game. I was expecting some sort of paid transportation for this like in Morrowind, but it's not enough to make me harbor "hate" for the game. It's not like I could just jump anywhere right off the bat. I have to walk to it at least 1 time.
For level scaling, I actually liked it because it eliminates the possibility for me to just shrug off my shoulder when I am sent to a "low-level area" for some quests. Because enemies scale with me I never felt an area is obsolete. If I find the game starting to get harder I simply adjust the Difficulty slider.
