So, World of Warcraft does this nowadays, where monsters scale up to a players level on a player-level basis (so two players of different levels in the same group will both see a monster as their same level).
It opens up much more of the now-enormous game world for anyone to play in, which is good. There's no more either rapidly out-leveling old content or having everyone squeezed into the same few zones while the rest of the world is entirely vacant. (Although the new hotness is always much more populated than older content.)
However, it also means that leveling up means a lot less until you start reaching the by-expansion caps on how far up monsters will scale. Leveling up gives PCs more tools to play with, but even people who really enjoy modern WoW, like me, generally acknowledge that if everything more or less keeps pace with you, players lose much of the feeling of getting more powerful and more accomplished.
So, the answer is, this system does work, and I think it would definitely work for ttrpg play, but it's essentially a variant of the quantum ogre situation: Wherever the PCs go, there's almost certainly something that's more or less a fair fight for them. You will run into players who feel like this makes the game world feel less real to them. (You'll especially run into these people online, even if not at your actual table.)
If I might, I'd suggest not doing this, but letting stuff be at its baseline level but also having a robust wandering monster encounter table that includes the full range of monsters on it. So your level 1 PCs could conceivably turn a corner and find themselves eyeball to eyeball with a wyvern devouring a herd of cows and have to scramble to survive. And a higher level party could periodically run into a goblin hunting party that they can slaughter with impunity, if they're inclined to. Players can mostly avoid trouble -- stay out of the dragons graveyard until you're high level, to lower the chances of running into an angry and hostile dragon -- but they're not ever guaranteed to do so.