Quote Originally Posted by Jiro View Post
The first time I tried to play Oblivion I ended up pretty smurfing screwed when I got to Kvatch (or whatever it was called). Then I restarted and instead just never levelled up.
That's largely the decision I came to during later play through attempts. I'd usually save before leveling and see what the bonuses were. If they weren't sufficiently high I'd reload and wait hours before trying again.

There is something severely wrong with your game when not/barely using what should be one of the most important game mechanics is playing optimally.