However, in a dark cave this may be problematic. With the unkown around each corner and during fights, I will need to see. It would be unwise to change to a free hand while fighting just to cast a light spell when all goes dark.
So I would like to suggest continous burning torch. If I have a torch in a hand and engage an enemy, I would like to be able to throw it on the ground and it will continue to burn while I ready both weapons or weapon/shield. Of course if I chuck it in water, I should not expect it to continue providing light.
Since I will not be a Khajit and wouldn't want to lose my weapon/shield advantage every 30 secs or so to cast a light spell, this could be a easy implementation to have the torch burn on the ground.
The torch will obey some rules on the ground.
1. It would go out after the normal usage time.
2. It would not like water or ice elements.
3. And I better watch my step because I don't want to snuff it out on accident.
And one last thing, with Oblivion when you light a torch it was instantaneous. It would be nice if there was a flint action process that occurred with flickering magnesium or something. This would provide depth and sensory palpatation in a dark cave:)