LurkerPrime
Member
Does sneaking need to be leveled up to get any use out of it in combat?
Nah. So long as you're outside of a person's field of view you're "hidden." Levelling it up makes the view cones smaller and makes sneak-walking faster, to facilitate moving around vision cones (probably more helpful in combat areas than towns, but eh). It doesn't actually affect how quickly enemies spot you once you're in their vision cone, because that's 100% binary. You can be an OK thief with 0 stealth skills.
And don't assume invisibility is automatically better: you're still revealed if in LoS, so presumably a high level stealth skill will be necessary for the most well-guared individuals. Even when distracting people around the target, sometimes they're in a bad spot to actually steal from.
On that note, DOS2 has the best pickpocketing loot I've ever seen. It's an embarassment of riches in every (vendor) pocket.