Bending light is alteration.
Affecting the mind is illusion.
It really isnt hard.
"Illusion is one of the six schools of magic. It is similar to Alteration magic in that it seeks to change the world around the caster so normal physical truths no longer hold, but while Alteration magic is bound by the laws of nature, Illusion magic is not. Its weakness comes from the fact that while Alteration affects the entire world, Illusion magic affects only the caster and the target. Illusion spells can change a target's visibility, produce or remove light, produce or remove noise, charm a creature, induce hatred in it or calm it down, enhance or remove a creature's courage, prevent a creature from seeing or moving, or allow the target to see even in total darkness. The ability to enforce the caster's will on a target is also now part of this school, despite having once been considered to be Conjuration magic"
This is the way it is and always has been.
Alteration affects the world around you, Illusion affects the caster and the target. Invisibility affects you, and in affect to that effect, it affects the caster too.
If you really want to argue that invisibilty has no place in the school of Illusion, then we should be looking at the lore of the whole series, not Skyrim specifically.