Ovinomancer
No flips for you!
I am on the "still sheds light bt torch/flame invisible" side of the ruling.
That said, I usually have underdark critters react unfavorably to light, just as you or I would if someone shined a flashlight in our eyes in the middle of a dark night. That is, yes, it kills invisibility in some regards, but really, it's just a floating point source of light. If I were a giant spider, that would bother me and I would avoid it until I adjusted to the light, and then I'd ignore it bobbing about because, you know, I am a giant spider.
Light = food, though. Only food carries light in the underdark.