Two things that I've noticed with pickpocket:

1. Penalties are removed when you rest

2. There does not seem to be any message that you have gotten pickpocketed. After a few attempts as a low level pickpocket I'm almost sure I should have been spotted but no one ever seemed to.

I don't think our pickpocket changes were ever thoroughly tested (if at all), so this is no surprise. Refrain from using pickpocket until we investigate this more thoroughly.

Pickpocket penalties should now persist when resting. Please post here and inform us if this isn't the case.