No it does not need to be balanced like you claim. Skills shoulnt be nerfed because you have no self control. Beth gave us the chance to powerful if we want. You dont have to take advantage of that. But the rest of us should not suffer for your lack of self control. Like the people saying smithing is op when they use it to its full pontential. Its not op, its suppose to make you powerful. If you dont like it, dont use it.
Sadly, this forum has degenerated into those who do 'OP' things, and those who don't. It's the old issue of 'but it's in the game so they intended me to do it', rather than personal choice and understanding the consequences.
As I mentioned earlier, I have nearly 450 hours on one character, and my sneak skill is now pretty high, and I'm only using muffled boots for both myself and Lydia...I haven't put one training skill into Sneak, nor one perk...but it's improving because I'm using it, and those improvements are even coming from fireballing someone and not being detected aftewards...which fits in with the game's mechanics and skill improvement system - learning from experience, so to speak.
Sneak is one of the passive abilities, which just happen depending on how you play the game...a bit like the old acrobatic one in Oblivion. But at least with Sneak you don't have to bunny hop around the place to improve it.
That said though, if you do happen to sneak around places, then it will improve of it's own accord...but no one is forcing anyone to start sneaking up behind people and knifing them in the back, regardless of how successfull you may be at it. I know that I like to sneak into places and get as close as I can before I launch all out melee assaults, but that is in-character for my character...and I do prefer to sneak up on draugrs who are snoozing in their crypts and one-offing them if possible, because I prefer to kill one at a time rather than face 6 or 8 of them.
My experience - I wouldn't say it's overpowered, because I'm not abusing it...because to me this game isn't a competition.
It does have a down side though...I did unthinkingly sneak into the Blades sleeping quarters in the temple, and accidently was sneaking past one of them sleeping...next thing I know I was attacked by them for some reason. I'm guessing that it was because I was skulking around in sneak in the dark....either way it required a reload, lol.