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 depends who you are playing. If I'm going against a group of seasoned PvPers, it does nothing. However, in an area with a lot of corners and some clueless gamers, you can shotgun spree the hell out of people.