Is there a mod like this already? basically I don't want to switch to spells in dungeons just for lights. I dual wield and unless they fixed it, it is a pain to hotkey those.

Thanks.

"They" haven't fixed it, but someone else has. Download Categorized Favorites from Nexus and you can put "sets" of gear on hotkeys instead of single items. So you can take off everything, equip your two swords, open the favorites menu, hit ctrl+f (new shortcut for the mod) and favorite your current equipped set (your two swords). Then you can assign that set to a number and it's "fixed".

That doesn't solve your problem about wanting auto-lights, though..

There's some items in my mod called GELO in my signature that do this.
I set mine to always be active unless I'm sneaking, but I doesn't check for indoors or not since that's my personal preference.

I'm sure there are more mods that do this, it's not anything terribly difficult to implement as a perk or enchantment.
But I've never seen or gone looking for one.