Given that lit torches are a source of light and the mod is fixed to work with all light sources, it is a rather complete change on its own, and both memers and crusty folk will probably enjoy it (input welcome).
Survival can be integrated for greater immersion and fun.
Early Considerations:
Means of getting torches would have to be available earlier on with field-sourcing figured out (how to collect its reagents while in a zone) and recipe/ versions of the torch, as well as other light sources such as small glowing stones, "Cast Light", light enchantment, cat's eye potion, "Cat's Eye" from Druid form, "Dark Adjusted [Night Elf]", and a universal "Dark Adjustment" which just means the longer you're in the dark without a significant light source, the better you can see (up to a very limited point). Sitting in pitch black would push the dark adjustment further.
Light Blindness would mean that bright light sources eat away at Dark Adjustment and gives a temporary partial removal of Dark Adjustment (which might be a complete removal if you don't have much to begin with) during and after the light source is removed [1 - 3 seconds]; the severity depends on the brightness and how close it is, and whether one is looking at it or not. Light Blindness fades away rather than disappears altogether (so vision fades in).
Elaborate Integration of Dark into Mechanics:
Crafting would be impaired in varying severity depending on light level.
Something like 3 -6x as long to make and 66 - 99% chance [depending on difficulty of item] you need to try again in pitch black; 1.4- 1.8x as long and 8 - 16% chance [depending on difficulty] to fail in semi-dark with semi-poor OK night vision.
Survival level would improve these #s and Night vision of course improve them as well.
Survival skill would increase from fighting in the dark up to 225 survival levels. Crafting in the dark would increase Survival up to 75 survival levels.
Creating tents, fires and torches in the Dark would only improve the skill up to a low point such as 10 survival levels while below Survival level 50.
Creating tents and fires and torches when it's bright out would improve Survival up to 1 level each. That's it. It's about Survival afterall, not crafting.
Survival skill would increase night vision depth & rate of adjustment, and resistance to light blindness effects (very limited).
If Night Vision value is too low and darkness too high around target; miss chance increases. Affects range much moreso. If the target is in pitch black, and one attacking has very poor dark adjustment, and they're 35 yards away, the miss % is 20%.
Extra miss % is 1% if the enemy is in semi-dark and the player is somewhat Dark Adjusted and they're at say 10 yards. Being light blinded has varying severity but the extreme would result in 60% miss chance versus targets in pitch black 35 yards away.
If one player/ enemy has better vision of the other, their ability to dodge increases up to a limited point; such as 20% dodge effectively becomes 35% dodge at the extreme. Ability to dodge is already different across classes [different from Agility conversion and dodge %] with Hunter having the best ability to dodge, and Rogues having the least [according to a Guide I read].
Hunters get +10 Survival skill; Druids get 15 survival worth in night vision and 5 survival worth in resistance against light blindness.