Stealth

I've personally found my stealth pretty effective. The glowing effect you refer to over the mobs' heads is probably the indicator that they've noticed something in that direction (similar to how in WoW when a mob will stop patrolling and turn in the direction of a stealthed player if they're just out of range). It just means you're getting too close. With some ranks in the talent that increases your effective stealth level I was able to really easily walk right around enemies to start fights off with a backstab.

I'd also note that it's really handy how your companion will stealth with you, but I wish it was easier to control where the companion will stand while stealthed. Also as a tip regarding stealth with companions, I was able to alt+right click scavenging nodes after fighting mobs and then engage stealth after giving my companion the command. Kaliyo would then run off (stealthed) to scavenge the mob while I could proceed to move towards the next mob in stealth. If you alt+right click after engaging stealth then it breaks the stealth.

Actually its not really any different from WoWs stealthing... if you stand directly in front of a mob not stealth speced as a rogue or druid in WoW you get seen as well, if you spec into being a stealth character on the other hand you are less likely to get seen even when in line of sight...my guess is you where trying to stealth directly infront of mobs equal or higher level then your own not speced to be harder to be seen, you do that in WoW you get the same results, you just don't notice it as much in WoW since you level faster then the zones and so are often a few levels above the mobs levels.

I think you are just accustom to the fact that with the way leveling has been in WoW the past few expansions that you don't pay attension to most the stuff you do you outlevel before you finish, while as in the first 15 levels you played in ToR you really don't get a point where your higher level then the mobs, in fact doing about 16 levels during the weekend beta most of the time I was even a level or 2 below the mobs level which has a great impact on how stealth does or doesn't work.