What combination of spells (invisibility, muffle) enchantments (muffle), perks (silent casting, stealth, muffled movement, silence), and potions (invisibility) can be used to remain undetectable?
Whether enemies can you detect you depends on several variables: (1) lighting; (2) sound; and (3) Sneak skill.
"Sound" is a product of the weight of your equipped armor and your movement speed. Muffle effects only deal with the weight aspect of sound; thus, if you're naked, wearing cloth, or have a Standing Stone/ perk that makes your equipped armor weigh nothing (Steed Stone, Unhindered, or Conditioning), then Muffle effects are pointless and unnecessary. By the same token, if you're wearing Elven armor, which has a total weight of 7 lbs, you don't need it either. You only "need" Muffle effects if your armor has significant weight and you haven't addressed it via the Steed Stone or Unhindered/ Conditioning. If that's the case, the Muffle spell takes care of it completely, or you can get Muffled Movement + the Muffle boot enchant to achieve the same effect without Illusion.
Invisibility + Muffle make you completely undetectable.
Is 5/5 stealth so much better than 1/5?
No. 1/5 is plenty.
Could I just have muffle enchantment on a piece of clothing and drink an invisibility potion and not spend any perks?
As I mentioned, if you're naked or wearing cloth/ Elven armor, Muffle is unnecessary. If you're armor weight is significant though, you'll need more than simply a Muffle enchant on your boot, as that only reduces noise by 50%. Pair it with the Muffled Movement perk for total silence, or skip them both and rely on the Muffle spell.
It's been my experience that perking both Illusion and Sneak is overkill. 100 Sneak + Muffled Movement + Muffle boot enchant makes you virtually undetectable, while Invisibility + Muffle makes you completely undetectable. Pick one or other.