I don't know how many people miss this, but remember on oblivion how you could hop on shadowmere with the dark brotherhood garb and ride up looking menacing with a torch in your hand? Kind of like the angel of death. I have noticed however that on skyrim it places the torch rather awkwardly in your hand, and it looks more like you are trying to burn shadowmere than look BA. Am I alone in this?

No, you're not m8 .I too use a lot of time on horses with a torch in my hand. Though I agree, it would look good if it actually hold the torch upright, I am not really bothered with it. But I'd like to see it some day being added.

Probably an oversight... they forgot to animate the character holding a torch properly...