This isn't at all about guerrilla damage(I think 1 AP sneak attacks in combat are fine), it's about enemy AI usually not doing anything about the player's party ending a round in stealth. This is especially for ranged characters such as mage/marksman, where it's easy to keep out of sight cones perpetually.
The AI needs to do more than sit around dumbfounded skipping their turn or trying to heal themselves through the damage. They should be moving towards the last spot they saw a character stealth, or tossing an AoE effect in that area. Sneak would still be strong for avoiding direct targeting and forcing the AI to waste AP on things like that.
Oh okay. I hadn't thought about its defensive applications, especially when adopted by every single party member.
The issue here is that the enemies in this game are very bad at dealing with "yellow light" situations. They can switch between "green" (nothing to worry about) and "red" (enemy spotted, time to engage) very well, but can't deal with situations in the middle (we can't see any enemies this instant, but they were just here a second ago).
Honestly, I think the game should be pretty unforgiving on players trying to sneak with an entire party. The first thing I'd have monsters in "yellow" mode do is a little 3AP-or-less maneuver I like to call the Square Dance:
Now obviously you're not going to maintain your sneak within 12m or so of the monsters if they start using this on you. Which would mean you'd need to keep them distracted with other characters who are
not sneaking; as long as they don't feel suddenly alone, they don't square dance. And that's fine, you should still be able to use Sneaking to shift monster focus off of certain characters and onto more dedicated tanks and such. What you shouldn't be able to do is have the entire party go "invisible" with ease by having everyone invest in sneaking.