Invisibility works great in PvE, but that's because the enemies are programed to ignore you. In the few instances where I can view my character in third person i'm not really all that invisible. Even when standing completely motionless you're still quite blue. I've tried using it in the Crucible and i'm being spotted almost instantly regardless.
Is there any practical use to trying to use invisibility against real flesh and blood players with eyeballs or should it just be ignored in favor of other skills when in PvP?
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It is very easy to spot in the open, but that isn't the main utility. Camo hides you on the radar, so you can sneak up behind enemies and get the drop on them. If you know there is a group of enemies holding down a hallway go invisible, flank around, toss an arcbolt grenade, and clean up the shield-less stragglers with your primary.