In my opinion, in Morrowind
In my opinion, in Morrowind no matter what level you were a great deal of enemies were pushovers and a great deal more were extremely frustrating to fight. What made it so unique was that it dealt with certain things very realistically, e.g. most NPCs could give take a good beating even at high levels, Mudcrabs were jokes, and Cliff Racers (to this day, in my haunted dreams) were nightmarish flying pieces of s*** that I love and despise in equal measures.
It would be great if this could be done in the port, but if level scaling is necessary, at least make it believable. I honestly don't think any Bandit, even a Chief, should be able to obtain equipment like Daedric armor or weapons unless they're Bound.
I agree level scaling is
I agree level scaling is something that made me HATE both SKyrim and Oblivion....Morrowind with level scaling will be a terrible idea..
Oblivion's level scaling was
Oblivion's level scaling was horrrrrible, but Skyrim's was endurable. Not perfect, but it's not that bad. Anyway, this is a port of Morrowind, which had minimal level scaling (some loot, the bonewalkers and corprus beasts are all, I think) so I vote "minimal level scaling". Though, it's a bit jarring to see a dungeon easily defeated at level 1 just the road down from a dungeon which is more suited for level 10-characters.
Alex and I talked about this
Alex and I talked about this a while ago and made a thread on this very same subject. I can't remember much of the discussion that went on in that thread, but I do remember he and I where basically on the same page going make the world pretty static. Much like morrowind was. Random loot is an interesting concept but not the way beth has been doing it. I would recommend looking through AxlanderB's threads and hunting it down.
I realise this is an old
I realise this is an old topic but I'd like to contribute to the anti-scaling voices. Part of what I love about Morrowind is the inability for a new player to simply fly about the world and take on anything. Linked to the way the main quest pushes players to explore and train as opposed to completing the game in a linear fashion, I feel that the difference in strength of creatures in different areas help to create a feeling of diversity. In the early stages, I feel that it's right that some areas are no-gos, as opposed to in Oblivion and Skyrim where a new player could rear their head just about anywhere and get on fine. I heard that netches, at least, only spawn at higher levels (or did a while ago) and that brought up the fear that, while featuring the world of Morrowind, this mod might fall into the latter day design shortfalls of Bethesda. I'd also suggest maintaining the placement of daedric artefacts as individual items as opposed to having them spawn at random at higher levels, the motivation to hunt them out was an interesting one.

Please NO level scaling...imo
Please NO level scaling...imo i think level scaling was the reason Oblivion was nothing compared to Morrowind. Level scaling will ruin this mod, please dont implement it and take out the current skyrim level scaling aswell.