Levels monsters up to your level upon entering combat. It's as simple as that. This should not conflict with any mod and is compatible with any kind of mod that alters enemy scaling.
It does not scale enemies down to your level.
Enemies scaled to your level should drop better equipment and give more XP. This will increase their stats appropriately as the entire game runs on a few core scaling algorithims. This also means it is completely compatable with any mods that change scaling. The scaling changes WILL be reflected in the leveled up enemies.
The Orb of Strife
v1.1 of Monster Scaling introduces a new item that will automatically be added to your inventory upon loading a saved game or entering a new area, if it doesn't already exist in your inventory. It will be added to every character. If you are not playing a 4-player game or only want one person to control the settings, feel free to put it in a backpack and forget about it. It weighs nothing.
The Orb of Strife will allow you to custom tailor Monster Scaling to your individual needs. You can set it so monsters are leveled up below, above, or at your current level. You can even disable it if you need a break!
This will not de-level enemies, it only changes how enemies level up upon entering combat with you
I find some people are interested in knowing what is currently being worked on, or just the thought process of a developer. I decided to start a Trello board to help me visualize and prioritize my ideas. You can view it here. Feel free to give comments or feedback on ideas!