The problem is Graal does not support masking, so there is no such thing as subtractive light/darkness. That means you can't really make it too dark because there's no way to make a light source "erase" the darkness. At least not efficiently. So you end up with a faint darkness and crappy lights like what's currently in Graal that just wash out what you see, rather than add clarity.
There is one way to do the above, and I have been testing it out but there are a lot of bugs and various other things that need to be sorted out. The most important is efficiency. If it can't run decently on a majority of the ipods out there, it won't be done(because we'd have to maintain a fair playing field, and visibility is an important thing to keep fair).
My ideal state would be that only cities and popular areas/noob areas are lit up(for instance the path from Big Brother to Graal City) and otherwise you'd need a lantern to walk around at night. I'd also like to have it so any player with a lantern would be a light source, but that wouldn't be possible on iClassic because having to loop through a hundred or so players would be way too intensive for any iDevice.