I don't see what the problem is really, since you can dynamicly trigger the nearest #of lights in your scene if you like. Did that in Aerial antics. At the time we didn't know how to control the falloff so visually it was a bit weird as we had wll over 8 lights and they would keep switching on and off as you passed through the level. But it shoudl be a piece of cake now. since if it's not visible you shoudln't need to have the light on at all.
One thing I'd like to have is the ability to have the lights only effect meshes that you want them too. So that only animated objects that move through a level are lit.
One thing I'd like to have is the ability to have the lights only effect meshes that you want them too. So that only animated objects that move through a level are lit.