there are some side quests that requires pickpocketing npcs and the minigame needs to improve. I would suggest that the detection depends on the color code of the pickpocketing minigame where the color changes from green to yellow and red that is where the player needs to decide to complete the game without getting the item. so when the pickpocketing interface starts flashing red he should be prepare to abort and exit the game. currently its so random that the player does not have time to react and he gets caught. so in this case a prior savegame is needed to repeat this move which is force to the player to do this or he fails the quest. there are settings ingame where u can increase the npc detection number and this is where the problem occurs cuz it will be really hard to pickpocket. so with this changes the minigame will not be affected by the npc detection and be tied to the minigame itself.
From the new (1.3) patch notes:
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thanks alot for the heads up. Cheers
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Pickpocketing was ok even before 1.3. You have to train first. On sleeping or drunk people. 
I never understand the pickpockt minigame beacus you even get caught if it is in the green. Or not caught if you are in red.
for sleeping or drunk ppl no problems with pickpocketing agree. i did train my pickpocketing to lvl6. was on this quest to steal money to return to this old prostitute. the guy was sitting by himself and i had to reload so many saves to get this done…