Oblivion questions before buying:

Steam has been running the GOTY edition for $10, so I'm inclined to think that's a steal. But I have questions:

1. Does playing the Steam version allow the use of mods?

2. The level scaling has attracted some passionate criticism of the game with which I agree to a certain extent. Does the level scaling really detract from the overall game?

I haven't had that much experience with Elder Scrolls games. I played Daggerfall way back when it came out. It was a buggy mess and the dungeons were awful. I tried Morrowind and couldn't really get into it based in part to having a PC that couldn't run it well with the setting I want. But I also just didn't enjoy it for inexplicable reasons.

3. Is Oblivion an improvement on both Daggerfall & Morrowind? It got rave reviews, but I don't trust Gamespot or other gaming mags reviews.