I see. If that's how it is done in Thief then I can understand why you are able to put out lights without a frame rate drop.
I was thinking of adding three different lighting modes to have most people as possible play the game.
1)
To use lightmaps and dynamic lights combined.
When a torch is put out I don't really know how to update the lightmap (as in reference to this thread)
2)
To use lightmaps along with lightmap altering per pixel lights (Evolved has a shader for this I think).
Still the fact remains that I don't know how to update the lightmap when a light is put out.
In this setting you will also be able to "see" the dynamic lights; for instance a guard walking with a lantern will light up the lightmap.
3)
To use a soft shadow shader or something similar.
Which will probably drop the fps really bad. (I tried altering one of Evolved's shaders and it dropped from 980fps to 134fps with only one light

)
Here I will probably have to go and learn hlsl shader programming aww..
But if I manage to get it working it will be spectacular (for those with pc's capable of running in this mode).