Scaling in Morrowind wasn’t really a problem because almost every enemy was hand placed. You don’t have hordes of generic “Bandits” (in glass fucking armor at end game) - you have Tunipy Sharmirbasour, who has a reason for being where she is and a set level. Barring like guards and some of the humanoid enemies in Tribunal and Bloodmoon - everyone has a name.

Leveling only really comes into play when it comes to some of the generic loot that can be rolled, what some shopkeepers might have, and generic creature enemies. Even then, the scaling isn’t ridiculous - going from rats to Kagouti doesn’t feel uneven. Unlike Oblivion, you also will continue to see lower level enemies generated.

Oblivion even levels the quest rewards - so your Daedric artifacts and faction completion rewards will be useless once you level.

Leveling in Oblivion also affects enemy stats, and a lot of time it’s a flat bonus. Late game ogres and Minotaurs are not fun to fight, because they’re just massive health pools.

Morrowind has the same “inefficient” leveling problem (like, endurance is something you want to upgrade as early as possible, because it effects how much health you get every level up) - but in Morrowind you aren’t permanently fucked because you spent your first ten levels training acrobatics and speech craft or something.