I'm quite sure it has been that way at least since 3rd Edition.
There's a reason why military flashlights have a red cover. It allows for light without the light traveling as far. I've been able to pick people out in the dark from quite a distance away simply because they were smoking a cigarette.
As far as spotting light from a distance- you can see very small lights from a very far distance as long as you have line of sight on them. The 10x rule probably understates the real value by a lot- in flat country in the dark you can see a small light (candle, flashlight pointed at you) from 3 miles away or more before the curvature of the earth intervenes. If you are up on a hill or mountain, you can see lights from maybe 10x that far. I would essentially say that a light source has a chance of being spotted from far away as long as the observer can acquire a line of sight to it.
The thing is, if you want to simplify it much more, you kind of eradicate lighting as an adventuring concern.
Which is fine. I think lighting should be in the camp of an "optional module." You can assume that all characters always have enough light to seen fairly normally by, or that they don't (and are thus in darkness), or that they are somewhere in between (and thus have concealment). A torch gives you enough light to see by. A candle makes everything dim. Or whatever. The End.
Want to measure your torch's precise radius of bright and shadowy illumination? Mokay, but that's something you can opt into, not something every DM should be expected to consider Very Important.
To me, it is easier to ignore a rule I already have than it is to wait for one that I might get later...
ComradeGnull said:Disagree, however, as to making it a 'module', unless by module you mean 'in the core book, but clearly labelled as optional'.
Also worth noting that if light rules aren't in by default that changes the equation as far as balancing character races for Darkvision and Low Light vision- Darkvision is a big advantage for exploration/scouting if you use light rules, but useless without them.