Lamp doesn't act as a light source?

[Commando Peach]

Well... yeah. The biggest advertised way to reduce insanity is to progress in the game and solve puzzles. It follows that most scripted events would fall under this and help clear your head more than a little.

I did not, however, realize that standing in candlelight will restore your sanity. It's strange, because part of me was sort of intuitively acting as if this was the case when I first started playing. I'd run to stand right next to lamps after long stretches of scary stuff and just sit there, as if I was taking a breath or waiting for something recharge before venturing forth again. So I guess it would make sense in a strange way.