Not all it's cracked up to be...I mean, especially if you're not using any type of crafting. I wonder why bows camp at *3, but you can get daggers up to *15(30).

Enemy hitpoints simply outscale the damage of bow sneak attacks if you don't smith like crazy. Maybe I'm just fighting tougher enemies? I'm level 19 with a dwarven bow and arrows, fwiw.

I think it is meant to be this way since it is more difficult to sneak up to an enemy close enough for a melee hit. If you do manage they you are rewarded with more damage done.