I'm not sure is any of you have played Amnesia: The dark decent. But it pulls this off batter than any game I've ever played and its indie.
Beth should really use the same mechanics. http://www.youtube.com/watch?v=xZSlbtGIppc
You need the Lamp and if you are in the dark, your eyes do adjust but just like they would IRL.
This was exactly what I was thinking and was just reading through the replies to see if anyone said it already. I agree 100% Beth should handle dungeon lighting almost exactly like Amnesia. The only light should come directly from sources such as fire or flame atronach's, or things that glow. No light entities placed around the map to light it up. Lit or unlit torches are fine, but no random lighting please. And for the people who have a hard time seeing or are afraid of the dark, you can always adjust the gamma.
If an item is in the game and has a purpose then there should be a NEED to use that item. I can't remember ever NEEDING to use a torch in Oblivion, if I did it was pretty rare. I remember using some torches in Morrowind though. My point is: no more useless items and that includes torches!
Skyrim is a more rugged place and much less Tolkien than Oblivion and it has dynamic lighting on everything so it's very possible to see darker caves and ruins. It helps us tactical stealth players who like to stick to the shadows and scout the area and devise a plan to take out the army of monsters 1 by 1 in the safest manner. I want more to fear.