It does sound good! I don't want their cloak to be removed for movement in cover, but rather for movement out of cover. As of now, they can move from cover to cover pretty much cloaked no matter the distance. Moving cloaked in cover is fine by me and gives the unit its edge. However moving from cover to cover cloaked shouldn't be a think, unless the cover is like 0.5 seconds apart from each other.
I somewhat disagree, I'm unsure if the sneaky nature of the unit would fall apart if they couldn't move with cloak. Maybe a few seconds (2?) cloak time when out of cover (out of combat) instead of 0.5 sec or similar would suffice. The point is shock, trap and flank value, and with a too short recloak time (out of combat) with the debatlable dps nerf would tip the risk vs reward too much towards risk favor when considering the cost.
What I do agree with is simply a way longer recloak time when in combat and a slight dps nerf. Would be awesome to try that out and go from there to see if they're still overperforming or not.