You could have a skill that let's you sense how good they are at whatever. And stuff. They could call it "wussy sense", as in "My wussy sense is tingling! That dude would kick my ass! I'll go find someone smaller to beat on!".
That better system is called 'ingame lore'.
Like, what you'll do (unless you are a retarded moron with suicidal tendencies, of course), if you'll head out to explore some terrain?
Find out that to expect there, what creatures/races dwell there, which of them are dangerous/aggressive/poisonous/use magic/fart fire/etc.
Preferably, it should also list their weaknesses, like some have tough skin, but brittle bones, some cannot stand cold, some immune to magic, but will quickly bleed to death from stab wounds in certain bodypart, etc, etc.
And if find out, that all explorers that went there never came back, you should get the idea that it’s better not to go there until you are at the very least as good as they were.
But of course, we cannot possibly expect players to actually READ stuff, right?
Each monster must have a big indicator with comparison of it's and player's level, no more, no less.
...
Well, in case of Oblivion, for instance, we have voiced dialogues, so it’s easier for the retarded among us, though.
It’s a bit pointless, though, because it features leveled lists that will not allow you to meet tough enemies anywhere no matter how suicidal you are.
If you, being a total noob, will venture to the deadliest Daedric shrine out there, where entire armies disappeared with as much as screams of terror and agony, you, at the very best, will find a couple of depressed scamps.