I play on 360, no mods for me. I didn't touch the lighting on my tv or game and everything shows up pretty decently.
And thats why people are finding nighteye not worthwhile.
People adjust your TV settings properly. The game has some fabulous lighting effects that can only really be appreciated when your viewing them as intened. If you sitting with the gamma way up your ruining the visual look of the game. I have adjusted my gamma and brightness to the correct levels and the game looks sweet, AND nighteye is extremely usefull.
Late on a moonless night you will be using nighteye exclusively to see further than 5 feet infront of you in the wilderness. In many dungeons you will find yourself activating it to sneak in and out of the shadows, finding the path to take, and using it to detect and avoid traps easier. Of course in the snow is not as useful due to the high white level background, however everywhere else it becomes an excellent tool.
And for those wondering, night eye lasts 60 seconds and can be used as much as you like, there is no restriction on its usage. You can toggle it on/off at any time, so you essentially have a permanent racial power as you can just toggle it back on when it runs out after 60 seconds.