Here is the balance issue. While I typically never use stealth the whole idea of your gun being jammed while uncloaking would instead make it be a disadvantage to cloak during combat and reduce it's overall effectiveness majorly. When someone is cloaked it basically halves their hp, this video doesn't show if the hp remains halved while he's uncloaking, if it's the case it'd probably not be wise to nerf cloak that harshly. The delay he experiences in the video is more then enough time for him to be killed before he's decloaked fully regardless of the damage buff or not.
The better idea if one were to be considered would instead, be to make the delay of re-cloaking longer. Even though I never use stealth and sometimes cringe at the times when I get ganked from a stealthed player sneaking up. I still considering it my fault for not spotting them sooner, however the fact that they can nearly instantly re-stealth after firing could be addressed.
Overall I view stealth players against me as a minor gripe, but some small balancing changes could make it slightly less annoying in stealthy pro players.
0.6% stealth FTW ^_^