Completely viable. Some would even say overpowered. Depends on your playstyle preferences and opinion, I guess. It starts out slow, because the key perk that makes it work really well, you don't get until level 12. That perk is Silent Running. If you like stealth play, be sure to get it. Before that, you can only effectively sneak up close on enemies when in 'walk' mode, because being in run mode while stealthing makes noise that will get you detected quicker. Unfortunately, walk mode stealthing is slower than petrified slug snot, and hardly worth bothering to do, unless you are a true masochist. But you'll get to level 12 fairly quickly, and once you get Silent Running, stealthing in NV rocks really, really hard. Be sure to put points in the Sneak skill regularly as you level up- I usually have it up to 80-90 by the time i hit level 12, so I can hit the sneaky ground running (so to speak) when I get that holy perk.
Also, wear light armor for best affect, heavier armors make more noise and will get you detected quicker. You can get by using medium armor if you're careful, and have maxed Sneak skill. Other tips- sneak up from behind your enemies, use cover as needed, use shadows to move in when you can, and sneak at night if possible, as darkness greatly reduces your enemies' detection distance. Oh, and you will end up with companions, and companions can really F up your stealthing a lot of the time. Sometimes you just have to tell them to stay put in a safe place, while you sneak into some situations. Their problem is they are way too reactive to the slightest hint that an enemy suspects you are nearby- even if the enemy hasn't spotted you or attacked yet, but is only in 'caution' mode, your companions will immediately attack at that point. Lousy programming choice, in my opinion, but we're stuck with it. With no companions along, you can usually stop moving or sneak into a cover spot, and the cautious enemy will give up and go back to picking its nose again, before long. That's the basics- enjoy!