Nice :thumbs:So it kinda does and kinda doesn't 
but it seems like dungeons do? 
I think individual dungeons have a set "range" of difficulty. For example Embershard mine probably caps at a very low level since it's a beginning-of-game dungeon. Different regions also clearly carry different difficulties... the first time I traveled to Winterhold I immediately noticed that the wild animals were much stronger.
I think right now a lot of the info about how leveling works is based on guesstimation and developer interviews. Once the creation kit comes out, more of the nitty gritty details should become available. I for one am very curious what the difficulty setting affects. In Oblivion, I think the only thing it changed was the damage ratio between the PC and enemies (higher diff = player does less dmg, enemies do more). I haven't heard whether Skyrim's difficulty settings change anything more than that yet.
