Meh. It gives you +1 AC and attack and +4 to Hide basically. Trumped enormously by miss chances, touch spells, and invisibility, respectively. If the caster can get down to Fine, now you're adding +7 to AC and attack, which is significant. Tiny isn't so overpowering, though.
+8, isn't it? But you're right. Unless...maybe a rogue would rather have that big bonus to hide than the few extra points of damage from his weapon? Sneak attack can make up for the loss...hmm...yeah. You're right.