I do like the level scaling in the game, however, for sake of realism it could be a bit more random. With random I mean that there is some chance of meeting level 30 monsters early on as well as meeting level 5 monsters late game (with decreasing chance relative to your own level).

I have been thinking that the level scaling should have been tied to game progress rather than level. Basically, once you accomplish certain tasks, such as picking up the artifacts, the strength of enemies would increase. This would give the player some control over when the difficulty picks up, and would avoid situations like encountering Pestilent Rats before you have the means to deal with disease.

Also, I would reduce the difficulty of Arnika Road on the first visit.

I never found Arnika to be too difficult. I even cleared out the bandit-infested optional area near the Monastery in my first playthrough. You can always run away from enemies towards Arnika. The only trouble is when you get sandwiched between two groups of enemies. The only thing I'd change is the sheer respawn rate. They could've at least set several days between two respawns. As it is, dungeons and overworld areas are sometimes repopulated within minutes. This is especially annoying when you just want to run through an area, and the combat takes a very long time.