They do something like that in PoP:SoT.
That last image really doesn't do the game justice, on a high-end system it looks simply beautiful. I say 'high-end' for a reason, the glow effect is done through shaders and so a lot of graphics cards won't support it. You can do it the same way as DBP supports HLSL FX shaders but this isn't ideal as like I said, it doesn't work on a lot of systems and good luck trying to find a shader that simulates it anyway.
Another option is to do a gradient glow looking image, texture it to a plain, ghost it and put it in front of the window you want to glow. Also set some object properties such as it isn't affected by lights, ambient, etc.
Edit: Just took a look at the street lamp entry, its essentially the same as what I said to do, so take a look, it's pretty damn good.

"Computers are useless they can only give you answers."