So basically when you press the sneak button, you go into sneak mode, but your character does not crouch?

Not without completely redoing the sneak animations. I doubt that anyone would want to go through all that trouble, so if you want it you'll probably have to do it yourself.

You can remove the movement speed penalty and sneak at running speed but it looks kind of silly.

If all you want is to be in sneak mode, but not crouched, couldn't you just copy the walk animations and rename them to replace the sneak animations?

The game shouldn't know the difference.

Yes, that would be an easy way to do it. I never thought of that. :facepalm:

Unfortunately, sometimes the obvious escapes me.