If I need to sneak for invisibility to work, then why use it? Sneak works great on its own if you level it and perk it.
I kept reading about how awesome illusion is, but 30 hours in I think it is kind os worthless. I wasted almost a whole tree worth of perks.
Illusion is very powerful. While invisible and either having cast muffle or wearing a combination of the DB boots/Muffled Movement perk, it is possible to sprint past enemies without being detected. I rarely use fear, however frenzy and calm (and their higher level equivalents) allow for very efficient killing.
I'm currently playing a stealth character who only wields a dagger. It's almost impossible for me to kill anything without a sneak attack, so illusion spells are mandatory for clearing groups of enemies or if I get surprised by a sabercat, because I will die in 1-2 hits.