@monster528- I think we would have to see how exactly you are sneaking in order to get an idea of why it seems to be, in your words "useless and lame"
Personally I found it amazingly effective (sneak playthroughs were my favorites

) and by reading these other posts it seems to have worked well for them to.
I think you might be doing something slightly different, what enemy, what perks did you have, what weapons and armor were you wearing, etc.
You can look up the sneak skill and check all the factors that associate with it in FO3 to see if there was something there that you may have missed to make the skill seem "useless and lame"