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Yep. As you level, they level. Never liked that system, but each to their own.
You and many others are confusing the leveled item and enemies system with the term "leveling system".
Oblivion having leveled items and enemies was in response to Morrowind's difficulty becoming very trivial very quickly. It was a valid complaint of Morrowind but not everyone agreed Oblivion had the right solution. Of course there were countless mods that changes how it works
This is a lie. Have been playing the old game, lvl 30+ no bandits were daedric armor.
Nice try