Sometimes while Sneaking and the bandits are looking for someone, they would stand right in front of me. 30 cms in front of me, nothing is between us. They seem to just stare at me, i am also looking at them, with my daggers drawn, and then they move away claiming that it was just their imagination.

Sometimes it just feels like cheating to me, and I just have +30% bonus to sneak from perks and sneak leveled to 60


working as intended? or sometimes it gets bugged?

Working as intended. Sneaking is really easy right now. Mods or Bethesda will fix it.

When I'm invisible, some NPCs walking by STILL turn their heads and look at me as they go by. I have 100 in sneak and I'm an invis'ed and it still happens, hehe. Sort of breaks the immersion of being stealthed.

Maybe it shouldn't be that easy at 60%, but in my experience, that only happens in the dark. IRL, if someone is good at hiding, you can walk right by them, look right at them, and not see them. Half of hiding is just having the balls not to bolt when they look your way.

It is intended, can't really expect it to be Assassin Creed (althought i wish it is) or any other stealth game. this is, after all, a RPG which "number" weight more than game play.

Bandits are blind and stupid. Go try sneaking around forsworn, they are much more alert.

There is some times where the stealth gameplay feels a little unrewarding. There should be more mechanics like sliding along walls and using shadows and such, but make the NPC's more realistic as well. It would feel a lot more rewarding sneaking up on someone if you really had to stay out of their line of sight, instead of relying on a skill number.

Falmer are pretty alert, too. I probably only got one or two bladed sneak attacks on those guys at around sixty skill... and that was after spending several minutes playing cat-and-mouse with those particular specimens.

Position, light & shadow, and line of sight definitely matter. Maybe not against low level bandits in the dark once your sneak skill is passable, but the game is calculating your modified sneak value based on these things, if you play around with sneak long enough you'll know it.

While I can say I believe sneak has been immensely improved since Oblivion, it still has its flaws. I have noticed some weird occurrences of a bandit or walking up to me while I was in sneak mode in shadows, standing right in front of me and not notice me. I might also add this was on my character who wears full heavy armor and wields a warhammer.
I know I'm just reiterating most everything everyone else has already mentioned, but it doesn't hurt to add to the "number of people who have this problem" list.
That list being this thread which Bethesda might overlook. Or might take a look into. Who knows...