Agreed. Sneak is completely worthless at the moment in combat situations, and almost completely worthless in out-of-combat situations. That said -- I do like how they have handled backstabs now, auto-critting when attacking from behind; I fear that if they buff sneaking substantially, they might feel the need to remove the auto-crit feature of backstabbing to bake it into sneak.
I still think all sneak stuff should be in a single skill though. Sneaking + thieving. Spreading points across both is exceedingly punishing given the thematic overlap and the scarcity of available points.