Morrowind was unbalanced in the sense that a thief could steal 10s of thousands very early on if he knew where to look. Also, a glass dagger would net you something like 2500 quids vs. say 20 for an iron weapon.
But the key word here is if you knew where to look. It's natural after a first playthrough that you know the crooks and cranny of the game. If it's not possible, then it means grind is involved.
In an RPG, the most important part is immersion and narrative. In Morrowind, it was the sheer sense of freedom that you had that was very enjoyable and freedom means that the game is likely to be unbalanced and break somewhere.
In Oblivion and Skyrim, they did balance it so that the player had to work by doing the same things over and over. It's called grind. When you had a daedric weapon (whch was supposed to be a demonic/godly), it felt wimpy compared to Morrowind and it hurt the narrative. Also, in Oblivion, the monsters levelled up with the player, so that highway robbers had glass and ebony weapons. You were happy in Morrowind to find them, because they were rare but in Oblivion, well, it was just a common weapon.
I'm not even sure I buy the lethality of CP2020.
The natural inclination for most people is to take cover and fire like 50 cents. Most people miss. Gangsters surrender. Even if you get shot, I think that statistically, you are likely to survive.
You should have the opportunity to have the drop on someone. ArmA has many unbalanced elements because it tries to reflect reality. Warplanes are way OPed and rightfully so.