Hey guys...

So I found this mod called "Stealth Overhaul." I REALLY like the core concept, that you can't sneak attack with 2-handed weapons and that daggers actually have more of a sneak attack multiplier. Unfortunately, I kept on reading some of the reviews and there's something in the mod that you can't disable (not to my knowledge) where enemies are less likely to detect you when shooting a bow or just being behind the NPC, making it overpowered.

Basically I'm wondering if there's a mod out there that does the same thing (makes daggers more useful when doing a sneak attack while making longswords less useful) but not making it overpowered.

Thanks for the help.

I do not know one specifically for daggers but Deadly Reflex 5 has some excellent stealth kill moves dependent on blade and sneak skill; including the 'from behind throat slit' and 'multi-stab sleeping execution'
hope that helps

There was a mod called "Stealth fix" or something, It was fixing the damage multipliers and enables the game to ignore armor when you become a sneaking master... Can t remember the name sorry...

Those all just make stealth way overpowered and don't even add the whole improved dagger multiplier.

Oh well, guess I'll just keep on using 2-handers to sneak attack since this dang game allows that >.>

The vanilla Oblivion doesn't give a sneak attack bonus for a two handed weapon, at least my GOTY edition doesn't. And as a master of sneak, in Vanilla Oblivion, your quarry's armour is ignored if you succeed in your attack.
A Daedric dagger already does more damage in three seconds than most blades by virtue of it's weight and the number of attacks you can perpetrate in that time. Not Ideal for the initial hit, I grant you that, but your victim spends more time trying to block, or parry, your blows than actually trying to fight back. So, IMO, a dagger is already more useful. Until you find a mod, you might try springing your initial sneak attack with a longsword, to maximise damage, then immediately switch to the speedy dagger to finish them off. Happy hunting.

Stealth Overhaul by JOG.