As I see it, the problem with scaling is that it removes any incentive to twink in the first place. Who's going to spend lots of time and/or gold for best-in-slot gear if it's just going to be auto-adjusted when combat unfolds?
On the flip side, the benefit of scaling is that it removes most of the incentive behind griefing. 110's who hang out in lowbie areas to one-shot people who can't possibly fight back, and to give their in-game experience perpetual grief by killing quest-givers and flight masters, are dog-shit human beings who ought to be skull-fucked with a barbed-wire wrapped baseball bat. In my humble opinion, of course
Overall, I don't think Blizzard has any incentive to implement any sort of auto-fairness mechanism out in the game world because I'm guessing a large portion of their revenue comes from narcissistic and/or sadistic players who, for just 2-cents per hour, have 24/7 access to a pool of 'victims' who have zero remedy in response to griefing. Profit before ethics, right?
So, I think it's a good idea in response to the problem it's intended to remedy, but a bad idea in that it introduces yet another problem that would then be in need of a solution. I don't know what the answer is to griefing, but I know what it isn't: a level playing field where all advantages are auto-tuned away when combat begins. This, I think, is why most of non-rated, non-instanced pvp is going to hell in WoW: stat templates based on ilvl alone. Outside of twinking and try-hard contexts, you can literally bg naked and do as much damage as someone in fully level appropriate questing and dungeon gear. Talk about destroying motivation