....
The only other solutions that I see is to (1) make the Player Character's power not increase as dramatically. But then people won't like that because in a RPG people want to see dramatic progression in their character; or (2) have the world be very very difficult to start, but people won't like that because you'd be severely restricted in where you can go.
.....
Then the obvious innovation here, give people a dual difficulty option, one sets game beginning, one sets game ending. And be broad about it. Then I can personally choose something like:
Start..................End
Very Hard..........Easy
(classic RPG)
or
Start..................End
Very Hard..........Normal
(classic RPG with avoiding easy game ending)
or something that is only for the challenge:
Start..................End
Very Hard..........Very Hard
(hardcoe level scaling)
And many more other combinations, something like:
Start.................End
Easy................Very Hard
(Traditional Non-RPG linear challenge)
Could be fun. Let the player choose it.
Off course, I typed the experience. Normally, the world would stay as normal in beginning and normal in the end, and we would be the one progressing and that would read as hard to easy in experience, if the player chooses so.
I thought the game scaled enemies with your level?
They dropped scaling individuals. All spawn lists are still made to be 1:1 match to player level, i.e. level scaling. But they created an exception group for specific places that ignores this and assumes player level as a higher minimum, very few places are like that and that minimum is only up to level 25(which can extend to +10 levels with a standard spawn system, the boss of the dungeon). This creates some kind of static world, I think it roughly works.
After level 25, it is all level scaling until the highest leveled enemy which is something around level 48. Well, obviously player can pass that for good, up to level 80. You will experience problems in this part, game getting too hard or too easy based on your leveling efficiency, the famous efficient leveling problem.
I think it is obvious what is wrong here. They didn't design this game for a level 80 character. I think a level cap of 40 and extending that exception group with places which have minimums up to level 38 would work for end game balance.
See, it is all about relativity, if player gets to experience level 48 content in first part of the game(which would be another common(or rare but known) one shotting), that will set the standard hard for the game. And as player progresses, it will serve as a good measure for progression. The player won't think "the game is getting harder". Player will simply know how hard the game can be. This can be done without overdoing it like some other examples which were accused as limiting freedom to confined spaces. We should accept that being limited to content around our level is equally wrong if not worse.
I am talking about balance, player can still level up to 80, but simply get the power level of 40 of now. Pretty easy to turn numbers around without changing perceptions.
The right thing is to design the game world properly for once and see how it pans out. If your giant is level 32 and a vampire is level 48, then the player shouldn't be able to reach level 48, unless she turns into a vampire and should settle at level 40 for still being a human and expand horizontally with perks. And I am being generous here for dragonborn's sake.
*Numbers can be true or false, give or take...