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Yes, the early levels are hard... especially when learning the combat interface and developing some effective combat strategies. Depending on what your combat style is (magic / melee / stealth ranged...), some stats are more important in the early levels than others (Endurance!!!). I found that there was a time when things started to get MUCH easier though... probably partly due to improved familiarity with the game, partly due to better loot (magical weapons, better armor...) and partly due to improved character stats.

RE: character development,
The +5 thing is a pain (expecially with the cost of training and cap on the # of allowed training sessions per level). I'd recommend either using a mod to change this to your liking (there are many options), or reading up on some character development suggestions:
http://www.uesp.net/wiki/Oblivion:Character_Creation
http://www.uesp.net/wiki/Oblivion:Leveling
http://www.uesp.net/wiki/Oblivion:Efficient_Leveling
Note: these pages have some minor spoilers, so if you want to be 100% surprised I can direct you to some key non-spoiler parts (like "The Levelling Problem" section on the Levelling page linked above). Be carefull reading the UESPWiki though... while it contains some great information, it's filled with spoilers.

Another option regarding the +5 thing, is to use the console to "fix" any stats that were less than +5 when you levelled.

Tip: patch the game, and get the Unofficial Patch(es) too... for the many bug fixes.

Hope this helps, and happy gaming.