You're supposed to run from anything not very close to your level (2 above is too much).
Sounds like a single level makes too much of a difference here. Is there a reason a level 40 character should have no chance against a level 42 enemy?
Hoshigami: Ruining Blue Earth is an example of a game that suffers from this sort of issue, and when combined with enemies scaling to your main character's level (up to a point), the result is a game that most players, to my understanding, found too difficult to be fun. (It also has the effect of making solo runs far easier than they ought to be.)
Yeah, max level is like 12, and that's if you're lucky enough to find enough enemies, skillbooks, etc to get that high. Realistically, you'll beat the unfair final boss at level 10, so shave a 0 off your traditional levels and it makes sense.
EDIT: Investing in crafting to use the game's main gimmick is basically enabling hard mode. Your stuff is better spent elsewhere.
Nah, that's cause you went whre you sholdn't. If you look at the map, you realize that there's plenty of space back there. You're supposed to run from anything not very close to your level (2 above is too much). The game's primary problem is the shit they went through to balance the game in such a way to make up for the lack of content, which ends up ruining the whole idea of the safe space.
Not sure I understood what you mean
Litterally, the insect in the bush 20 squares from your house will kill you in two hits
And that happens in Oblivion as well. You very quickly learn to stick to the cleared out areas and avoid things well above your level.