Hmm, just tested this on my lowbie rogue and I think if anything its a timing issue as this is what happened in sequence.
1. Stealthed Up.
2. Walked to an aggroable mob and waited for him to spot me.
3. He attacked me.
4. Stealth Fades a second or two later.
5. Regular Action Bar appears and I can fight.
Its possible that the timing was off when it was doing its cycle of status checkers but apart from that it did as I expected. I haven't got a high level rogue to test it on though.
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