Is it really just me?

It does seem that hitting monsters that haven't detected you can enter a panic state (seems to happen most often with backstabs that fail to deal enough damage to kill -- but 'most often' means still rarely seen). But if they know you're there, it never ever happens, it's always rages (Except with dragon vaults according to Soirana).

I've experienced this as well. At least for the majority of monsters. I used to be able to kick a cat on coward mode until they were critical health and then they'd run away, but they don't do that any more.

I feel like panic should be triggered if your opponent feels your strongers than him. Or if you're ugly enough (tied to corruption and appearance + armor of hare + aur la corruption + weapons of the void. It's silly when you pickpocket from a child and it gets punches you right into your eterminum armor of hate neglecting your flaming eternium two handed sword of the void despite your ten curruptions one of which is definetly the aura not speaking of your grotesque appearance caused by all these corruptions.