I didn't read all of the comments so this may have been covered, but I found a location where there are a bunch of sleeping NPCs (but you need the NVB II mod to have access to it). The Kill Instantly version sort of works. It still wakes people up but rather than immediately going to "danger" it goes to "caution." Also, because you don't have to wait for the animation there's now enough time to GTFO after you kill the person you were going for. It still won't work for killing an entire room of sleeping NPCs but it's better than it was, and I got what I needed out of it, so thanks!
you said you needed help with keeping nearby sleeping enemies from waking up. well the issue is most likely that when the perk executes the player leaves sneak mode for the duration of the animation so all you need to do is set it up so that the player remains sneaking throughout the perk's execution and the issue will be solved
Here is a suitable location for a test: The Monte Carlo Suites at night when the good olde, Scorpion Gang is asleep. I did my kills there and the suites have muiltiple hostile NPCs sleeping in the same room.
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Scenario: Multiple hostiles sleeping on mattresses laid out upon the floor.
Without this mod: As soon as I Sandman (any) one of them the remainder wake up and combat ensues.
With this mod (animation bypassed): All hostiles murdered in their sleep as God intended.
As of this time I was already maxed level so XP bonus be damned; it's the PRINCIPLE!
Roleplaying past Level-Ups still exists.