Could you elaborate on what way you think it's silly?
From an in-universe perspective, there's many canons where people have used stealth/invisibility by manipulating the minds of others (Doctor Who - the TARDIS does this to a limited extent, X-Men - psychic powers many times, Ghost in the Shell - hacking someone's eyes, all spring to mind), without actually obscuring themselves physically at all. From an in-universe perspective, this would remove friction for more concepts. Seems to perfectly explain stealth/invisibility to me while not making your costume translucent (if not, seems like you should object to your costume being at all visible when "invisible").
From an out-of-universe perspective, PvP isn't impacted (minimal fx in pvp was dealt with long ago). There's the "situations" SwitchFade above alluded to, but, I'm struggling to think of any instances. A team deciding to stealth a mission? Can leverage combat attributes for yourself, and someone using grant invis wouldn't be impacted when figuring out to reapply it. IIRC, Stealth / Stealth IO don't modify your translucency when suppressed, so you can't visually depend on them anyways to know when it's actually making you stealthy.