I think this can be balanced to make a lot of sense, without ruining balance. A lantern when equipped in the off hand could have its light level cut in half, allowing a dim glow. This could be implemented as one of the new glow sac item uses as well, it works. The lowered light level means players still have incentive to place torches, but the reassurance of equipping an aesthetic glow, would be worth the iron nuggets, without affecting spawns.
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