Invisible is quite overpowered if you know how to use it. Combined with Muffle, you can invisible in the middle of battle, sneak and then immediately perform a sneak attack on anything except Falmer. I do it all the time, it's actually quite funny.
It also saved me from investing full in to sneak, I only went through the base sneak (20%) and then up to the Dagger mastery perk.
This is my experience as well. Any player with a modicum of forethought can easily create an invisibility/backstab/invisibility char, complemented by sufficient stealthiness, to be an assassin of gods- and unkillalble. And without a whole lot of real effort. But, that's really not much different than the many other imbalanced build and crafting options readily provided in Skyrim, that turn you into a god and remove the fun. There are a world of 'cheap' ways in the game to turn an already easy contest into no contest at all, sadly, and invisibility is but one of many.
That's just the way they made it, and unless they make the game harder through future patches (unlikely), it's up to modders to put real balance back into the game, without the player having to specifically choose to majorly gimp themselves and ignore huge swaths of the game mechanics, just to provide a mite of challenge (no perks, no levelups, no crafting, no shouts, etc.). And on any difficulty less than 'Master', even that isn't enough. It's sad when the developers put so many game-breaking 'nuke' abilities right in front of the player throughout the game, smile, and say "here, use/do this, and you'll be a god for the rest of the game". What ever happened to spending time balancing all of the elements of your game, so that even on 'normal' difficulty, you can indulge in all the perks, skills, crafts, weapons, or whathaveyou that are normally available, and the game still remains at least semi-challenging throughout? Or if not, then at least on the higher 'difficulties'? I don't want to have to neglect or outright ignore 75% of the fun tools and items and abilities built into the game, just to have a challenge in it. Is that too much to ask?
Balance. Such a simple idea, yet completely missing from Skyrim.