If you own weapon range is 3 (or better), yes.
The idea of this is to have better chances against ghost hunter-class opponents. Imagine you are fighting a lvl 45 ghost hunter, who has developed the skill which gives them extra range (I don't remember the name, but at maximum it gives +5 range and, if maximum range is reached, it allows them to simply shoot several times the first round). In theory, your opponent can have a lvl45 arbalest with 5 range AND another 5 range from the skill. In total- he can shoot 10 rounds before you can do anything to him (or 8, if you have a set of javelines with range 2). This is where you stealth skill helps- the enemy will be able to shoot only 3 rounds at you before you try to retaliate. I find it quite ballancing and a proper counter-skill in higher tiers.
Ofcourse, currently it is not of such a big use. If you have range 2 weapon (I suppose you do), the maximum rounds an enemy won't be able to retaliate is 2. Nevertheless, if you are fighting marauder-archers, reducing their range by 3 means they are losing their advantage of having ranged attack in any case. Without the skill:
Round 1: Marauder-archers shoot at you, you do nothing, 'cos distance is 3
Round 2: Marauder-archers shoot at you, you return fire...
With the skill:
Marauder-archers' range is dropped from 3 to 0
Round 1: You shoot at them, they do nothing (distance is 2)
Round 2: You shoot at them, they do nothing (distance is 1)
Round 3: You shoot, they shoot back
All in all: the stronger and better-ranged your enemies are, the more use of higher levels of stealth skill you have. However, if an enemy is not ranged, this level is of no use, since it doesn't improve the distance from which you can shoot at enemies. It reduces the distance a ranged enemy can shoot back.