In TES4:Oblivion, everything from random loot to artifacts to enemies was levelled. This was way overdone and actually removed any sense of exploration and accomplishment to me. Why bother going in that cave if the chance at finding something unique/rare was 0? Why would I be happy with the Level 5 version of Mehrunes' Razor? In TES3:Morrowind there was the chance at meeting a (slightly tougher enemy) that provided a challenge. That enemy could be guarding a rare item which was handplaced loot (for instance the Mentor's Ring near Seyda Neen).
Armor in my opinion should never be part of a levelled list. Maybe they would start to pop up on a merchant here and there, but on the whole I'd like to see enemies wearing the armor and weapons they would be wearing. So bandits should be wearing Fur/Leather armor and keep on wearing this (they are bandits after all). Marauders and the like could be decked out in Iron or Steel. Certain important or powerful (neutral) npc's would also have static armor and weaponry applied to them. Daedric Armor should be so rare that maybe one person would be wearing it (Divayth Fyr) and pieces of that powerful armor could be hidden away in remote regions or hard to reach places.
So if a player would like to kill that guy with the Ebony Claymore; he'd have to try and set up a trap or stealth or something inventive to obtain it (without getting beaten to a pulp). I still recall a guy in a guard post at the Dren Plantation who had a Daedric Claymore. So I set about gathering items that could aid me in taking it from him. And when I finally set everything up and got the sword; it really felt like I had accomplished something and felt really powerful with such a mighty weapon

Also, Fame/Infamy should also be used against enemies. In TES4:Oblivion every enemy was suicidal and the lowly bandits (who should have been lowly, but weren't with their Glass/Ebony/Daedric madness) came running and screaming when the Champion God-King of the Imperial Dragonlord Legion came marching up.
Same with the 'your money or your life' highwaymen. Nice to get robbed at level 5; but that guy should run away screaming (with soiled pants) when the Imperial Dragonslayer came along carrying the famous Dragonspine Lance of Slaying things who look at me funny.
So please, tune the AI as well; next to reducing the 'everything levels with you' to more believable standards. Something akin to Fallout 3 would work; but please incorporate the Fame/Infamy to affect the behaviour of your enemies.
Oh, and please no rats (or any other critter) that come dashing from a mile away to nip at my Daedric Boots from Skyrim to Elsweyr for the sole purpose of levelling my Heavy Armor skills. Healthy animals in general will not attack a humanoid unless there is no other choice. Diseased ones I can imagine, but on the whole animals tend to stay away from people

I agree with some of what you said but getting rid of Level Scaling would ruin the game in my opinion I don't wanna find Daedric Armor at Level 1. The level Scaling needs to be tweaked but not gotten rid of completely. Lets not have Skryim become New Vegas in that department.