This game suffers from almost Oblivion-tier level scaling
They're really not comparable. Daggerfall's use of proc-gen means that everything needs to be scaled to some extent because it's not like you can go into each dungeon and individually figure out what enemies are carrying which loot. The criticism of Daedric weapons at level 12 also falls a bit flat, because Daggerfall's effective level range is smaller than Oblivion's, and also because the potency, rarity and nature of Daedric weapons hadn't yet been codified - the manual simply refers to it as a "refined form of Ebony" and Ebony itself is simply "very rare and heavy". Those still hold true. Even when Daedric weapons are spawning they aren't exactly a hugely common occurrence as everything below them still spawns more frequently. As for my statement about the level ranges, you're approaching endgame in Daggerfall at approximately level 14. The three strongest enemies in the game, the Daedra Lord, Vampire Ancient and Ancient Lich are levels 20, 20 and 21 respectively. Humanoid spellcaster enemies stop "learning" new spells at Level 18. There is an absolute max Level of 32 for the character if you build and distribute points correctly at character creation. Stronger enemies (of the type described) can begin spawning as low as Level 6.
In contrast to this, in Oblivion, Daedric weapons and armour begin spawning at Level 20. However, this is in a game with an effective level cap of 30 and a maximum level cap of 53 if you build a really terrible character and don't abused the ability to lose skill points by going to prison. The highest level at which new enemies spawn in Oblivion is 26 when the regular Lich begins spawning, and I say 30 is the effective level cap because that's when certain levelled quest rewards achieve their final form. Furthermore, Oblivion's strict level scaling operates using level ranges for spawns, meaning that a regular Lich will
never randomly spawn before Level 26, and all spawns are limited to the player's level minus 8. This is what results in the phenomenon where Level 30 characters never see anything spawning except for Minotaur Lords, Ogres, Liches, Xivilai etc. because as the player levels up, enemies are simply culled from the list of possible spawns. Daggerfall does not do this, and even at Level 20 you will continue to encounter trash enemies in all manner of dungeons. The "PC Level - 8" thing is also what results in Bandits and Marauders wearing nothing but Glass and Daedric armour, and wielding almost exclusively Daedric weapons once you level up high enough. Armour quality is staggered to spawn at Levels 1, 3, 6, 10, 15, 20 iirc and weapons are something like 1, 2, 4, 6, 9, 16, 20.
So part of the point here is that Level 12 in Daggerfall is not equivalent to Level 12 in Oblivion and a direct comparison can't be made there. Also Daggerfall's level scaling will never be remotely close to Oblivion's on the basis that creatures have a defined maximum HP and damage stat, unlike in Oblivion where Ogres have a HP of 26*(level - 3) meaning that they have 702 HP at the effective max level in a game where the most powerful enchanted weapons are doing approximately 40 damage per hit overall. Nothing in Daggerfall is ever remotely close to requiring 20 hits from a player to kill, whereas it's commonplace in endgame Oblivion.