The game isn't perfect, the game isn't real, it's full of dragons and other monsters that don't exist, it has magical abilities that don't exist. The game engine has limitations and it's everyone's job to work with what we have. To make it as realistic as possible, based on what we're provided with.
Hiding behind a three inch thick tree with a person isn't hiding, walking into an empty room and standing in the middle of it isn't hiding, walking into a clearing and looting a chest while others are staring at it, isn't hiding. If you can't deem what might be appropriate for a stealthing character in this sense, to be somewhat realistic in the use of the skill, then maybe you shouldn't play one.
Salsa said it best about people thinking stealthing is invisibility, it isn't, base your actions on that. Back in the day, I remember sneaks who would emote constantly, not so players could see, but because in case a DM was around, they wanted to show they had a reason to be stealthing where they are. They'd move their characters along the tree line, not right down the center of the road with no cover, emoting Stays to the tree line, watching over the road, or they'd go down a cave tunnel stays along the wall and in the shadows.
But maybe it's to far of a stretch to actually believe that the "Hide" skill should actually have some "Hiding" involved, other than behind the air. Do what you want, cause as Eoden said, there are to many examples. If I see something off, I'll tell you, as will other DM's more than likely. In the end, we tend to like to give the players the benefit of the doubt and simply say something if we something off.
