I don't see anything wrong with allowing a PC to become godlike at the end of the game. It's progression, you know? Hell of a lot better than how they did that shit in oblivion.
"Fuck yeah, I'm a GOD. I've conquered the shivering isles and I'm a level 44 badass, swinging my awesome Dawnfang.
Oh look, a rat...
You're fucked, I'm gonna cut you to pieces.
Ten swings of the sword and Dawnfang's enchant runs dry. The rat finally dies, and Dawnfang is half-broken.
Ting
Ting
Ting
Ting
Ting
Dawnfang is repaired.
Well that was a fucking ordeal, I'm not feeling very godlike.
Oh well, onto some ruins.
Hmm... bandits camped outside...
And they're all fully decked in glass/ebony armor and weapons that cost tens of thousands of gold.
Fuck that, moving on.
Hey, a guard riding horseback down the road.
Since everything in this goddamn is nigh unkillable, how about this asshole?
Hey shithead, eat fireball.
STOP RIGHT THERE CRIMINAL SCUM. PAY THE MOTHERFUCKING FINE.
Fuck that.
One mighty powerattack from Dawnfang... and his hp doesn't budge.
hit
hit
hit
hit
hit
hit
hit
Hey, it moved a sliver!.
Fuck, this punk in rusted iron gear is stomping me and my armor LITERALLY CRAFTED BY A GOD, better furiously mash my rejuvenate spell.
Out of mana, shit.
hit
hit
hit
hit
hit
hit
hit
Dawnfang breaks. The guard continues to pummel me. I die.
Why the fuck did they need me to save the world in the first place when they've got motherfucking terminator clones like this prick running around?"
Having the PC feel like a destroyer of worlds at the end of the game is MUCH better than the alternative.