So I found myself in Nocturnal's realm, the Prince of night and darkness and something odd caught my eye: campfires and torches and whatnot. Why are there lightsources in Evergloam?
The Wispering Shadows – the cultists that inhabit the Evergloam – consist of mortals, who probably don't see much better in the dark than anyone else. They likely put up the torches and made the campfires to make the place more hospitable to them. The Daedra probably don't care much either way.