I prefer the candlelight effect more than torchlight. Plus you can have hands free.

Candlelight for mages & torches for anythingelse.

I use Candlelight, although I sometimes also give my follower a torch. Because Candlelight is a spell it doesn't weigh anything, and it counts towards leveling Alteration. Sometimes I use Magelight if I want to see in the distance.

That does not work for me. I have requipped torches and they would go out after a few seconds.

Flames.

I just strafe Flames in my offhand whenever I need to quickly light up something. No waiting for it to go out. No switching back to an offensive spell in my off hand. Flames is also a great offensive spell for my stealthy, 1H character. If you reapply Flames multiple times it will stack the DoTs.

I prefer candlelight, as I don't like to tie up my hands.

Generally candlelight. The biggest problem is I'm not aware of any way of extinguishing it, which is a pain if you want to sneak and have to wait for the spell to expire. The light radius of torches is too small.

On the very rare occasion that I need a light I would choose candlelight. I started playing Skyrim with a kahjit because I remembered oblivions dungeons, but the nighteye is rarely used. The magic candles and torches in draugr tombs and dwarven ruins make all lights obsolete. The falmer tunnels are the only dark dungeons in Skyrim and the glowing mushrooms are usually enough light.