I think that most people misundersteand the whole level scaling, mainly because it was so awful in Oblivion.
But when you have a game like this, its really convenient to have some degree of scaling. It just has to be implemented well.
Fran overhaul proves that Oblivion with good level scaling would have worked great in Oblivion had it been more thought out/made more sense. Morrowind has level scaling, and even OOO, the most popular Oblivion no-scaling mod has a little scaling.
Scaling saves a lot of trouble when it comes to balancing, and designing dungeons, it makes the difficulty be better paced, it makes the world more dynamic (if you level up over time, why can't bad guys do that too?).
You don't have to totally negate the whole risk thing by having scaling, nor do you have to have super rats at the end (level scaling caps people).
Personally, I prefer as little scaling as possible, but some scaling would be totally fine.
For example: if the radiant scaling works for the main quest and that it only affects some location and some enemies so that you have some places that are a bit more static challenge which you can visit, while some are more dynamic, it would be ok, hell it would even be a positive thing. However, if everything is determined by that, and every cave you visit is decided by your level, then yeah that would suck.