yeah - difficulty is based on your character's level. So it's just as easy/tough to beat it with a lvl-20 character as a lvl-7. It would have been nice to have some areas, and some elements of the actual main quest, only really do-able when you reach a certain level. But nevermind - it's a great game - Morrowind with better graphics - which is high-praise indeed!
im sort of disappointed with the lack of non-cheat plugins and mods available for this game, too.... the dynamic AI is pretty funny though. i have taken to just following random npc's around and watching them do funny shit. i saw a fistfight started by a random pickpocket....it ended with about 5 people dead, laying in the street. ha!
Dont be glad. You dont see him after the first 10 mins. The first time I played and I saw the King, I was like "Wtf is Picard doing here???"