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or
Dark Dungeons: https://www.nexusmods.com/oblivion/mods/8802
in combination with (at least, that's what was recommended by a user)
All Natural: https://www.nexusmods.com/oblivion/mods/18305
But.. do you want torches and Night Eye to be viable or do you just want a slight modification in light levels? Your opening paragraph suggests the former, but towards the end of your OP, you say something else. Just give them a try (without AN if you don't want to install that) on a new save and see whichever you like.
Maybe using an ENB is another option to consider.
https://www.nexusmods.com/oblivion/mods/37863/
This mod makes it so you can use torches and whenever you draw a weapon that will make you unequip the torch rather than it just going away you drop it to the floor, with some cool fading effects added for realism. Personally I think it's more reasonable that a warrior who needs a torch to see in the dark would drop his where it can still give him light instead of putting it away but still being able to see to fight, in that case why use the torch at all? I'll be adding this one to my next playthrough.
This made me think of an alternative remedy for stealth characters, I searched to see if there's any mods that add in some sort of a partial nighteye effect but couldn't find anything, but I did see talk of there being nighteye reshaders out there. Perhaps one of them has a more realistic "eyes are adjusted to the darkness" type look you could use as a reason for your character to have it on say a ring. Not sure, didn't do too much delving on that front.
And again you could plop it into a ring and say rather than using magic it's just that the character's eyes are adjusted to the darkness.