The only real use I found was for early game dungeon crawling. You have a lot more control over the skeleton situation if you don't give away your presence before you can see them. You can be certain that it will find more use again whenever these mountain caves arrive.

In the overworld sneaking seems fairly pointless. It is rare that you would need to sneak past an enemy when you can run really wide of them. Getting caught isn't that bad either as so few enemies are able to navigate fast enough to keep up with a fleeing player.
And if I intend to snipe something, there's barely ever a reason not to do it the moment they pass into my vision. I suppose there are a lot of people who need to get much closer before they feel confident about the shot they are taking, but that isn't me.

And the dagger? Don't really care for it. Too situational to be worth the slot. If I'm going into melee range at all it is because I want to be quick. None of this slow crouch-walking nonsense.