Personally I dislike it very much. It take feel of achievement. Why even bother with gaining experience if it makes enemies stronger?
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It depends. When done correctly it can be fun, if all creatures/enemies are always scaled to your level, no. Dragon monsters for example should always pose a challenge or some kind of monsters that are you mirror images/copies, that type of thing. Maybe it’s your rival or someone that has far more experience then you do, why wouldn’t their level also grow?