The nerf is not bad, you can still do good in a stealth build.
The assassin armor before was over power god mode. Honestly don't think the Pimps ever really seriously play tested Assassin armor for gold 1.0 release. Tier 6 Assassin armor especially was OP in 1.0 release. In assassin armor 1.0 release, you could break stealth but stay crouched and the enemies would immediately lose track and lose agro of you even if they were on top of you. Now, you need to get away from the enemies and actually hide in a shadow to stop them from finding you. No more god mode with 1.1
Sneaking seems easier now with 1.1 assassin armor, just no more instant hide from agro like 1.0 allowed.