Hriston
Dungeon Master of Middle-earth
I wanted to do something like the latter part, but p177 "An invisible creature can't be seen, so it can always try to hide". "Always" is strong wording, so that made me feel that circumstances should be able to exist where your position is known, but you can still try to hide.
I don't think "always" is supposed to cover corner cases where an invisible creature's location is known.
For example, an invisible creature is being held in a grapple by an opponent. Can the creature hide from its opponent even though it can be felt to be in a precise location? I don't think so.
Another example I've referenced in past debates on this subject is an invisible creature confined to a box with no means of movement or escape. Can such a creature hide from someone who knows the creature is in the box? I don't believe it can.
This came out of numerous cases of running through magical darkness, as well as pitch black underground. I would rather say that a moonlit night was dim light, than treat all darkness without reservation as not pitch.
Mechanical darkness covers both moonlit nights and pitch darkness, and its effect on vision is the same as that of an area of opaque fog or dense foliage. Dim light, on the other hand, is reserved for twilight or nights when the full moon is at maximum. Given the lack of restriction on movement for dark conditions under the current rules, perhaps a fourth category of illumination, total darkness, may be in order for your games.