Thanks for the responses, but this doesn't really answer the question. I've read the wiki, and I understand what the factors are behind successful sneaking. You'll note, though, that these factors are all things that a player can control by being careful to move slowly, stay out of sight, turn off the light, etc.
So, what I'm asking is what PUTTING POINTS into the Sneak skill actually does. HOW does it make you sneakier than you'd be if you were just following the above guidelines? Does having more points in Sneak...
- Reduce the sound you make when moving in Sneak mode? (Yes.)
- Improve your chance at pickpocketing? (Yup.)
- Reduce the range from which an enemy can spot you in Sneak mode? (Beats me.)
- Reduce enemy visibility of you even in increasingly bright conditions? (Probably, dunno though.)
- Narrow enemy line of sight, so you don't have to be directly behind them to be out of sight? (Unsure.)
If you're a developer or you're able to peek into the guts of this game, I'd love to know what these points actually do. Thanks!
I'm not a dev, and I seriously doubt you'll get a reply from one, but I do wish to help you so I'm going to give you my opinion on sneak.
It is really one of the worst skills in the game, because you can make good use of it without putting any points into it at all. With a sneak of 7, you can still get a fair amount of sneak attacks in if you're playing a ranged character.
Sneak only really becomes worth the slow movement speed and high detection rate of enemies with 100 skill, silent running perk, and a stealthboy or invisibility suit (not sure if NV has one of these).
NPCs move around sporadically and jerkily, they're highly unpredictable and their movements don't make a lot of sense (think Cazadors). You will encounter more NPCs walking in circles than in straight lines back and forth (such as in a metal gear solid game). The reason this is bad is because light or dark, if they come into line of sight with you, you're most likely going to get a [CAUTION] label, at the least (meaning they'll search for and likely find you, more so if you try to run away as you make noise).
Furthermore, in the Xbox 360 version there is a bug where putting points into sneak beyond 50 has no result on effectiveness of the skill. Pickpocketing can be reliant on sneak, but I you're still going to be spamming save games, I just find pickpocketing to be not worth the frustration, maybe if we could quickload on consoles.
In short, with a skill of 7 in sneak you can still get sneak attack snipes when exploring the wasteland, but even with a very high skill, you're going to be detected often in close quarters (dungeons, caves, buildings etc.) Most players find it time-consuming and ineffective to be worth all of the skill points, but the choice is up to you. Most of the fun in these games is discovering what works best for you on your own, despite what other people say, everyone plays differently. Personally I find that I don't need the critical hits that they provide unless I see an enemy really far off, then I go for it.
Do whatever you want to do, you can always start over again

Hope I was of help!