Stealth is good, not Thief series good (best stealth game... EVER) but good.
Problem is that many quests require you to kill stuff, but your just not that good at killing stuff (better at avoiding it).
One option is to go Vamp, I think that offsets a lot of the negatives of a thief character... but it gets tiresome pretty quickly.
And as Kyrvias said... get your alchemy up quick (just got my apprentice glassware).
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