I made a "Shadow Suit" with each item at Chameleon 20% (Necromancer's Hood, Dark Shirt, Blacksmith's Pants, Doe-skin Shoes, Silver Amulet) ... and promptly stuffed it away in my closet after using it on two missions. It completely ruins the game. You can get away with anything, and yet it's still kind of annoying to attack some enemies because they don't actually put up a fight like they would if they knew you were there.
That said, I made a spell that kind of mimics the effect, though at least requires me to spend magicka on it: "Burning Sensation." Sets my enemy on fire, then immediately turns me invisible for 10 seconds, causing fire damage the whole time. By the time the duration is up, my magicka from casting has pretty much regenerated. I only use the spell in emergency situations...