There should be a way to place lights as you would with objects which allows the level designer to elevate, rotate, etc. the light as you could with an object. Also, there should be an easy UI in the level editor that allows the designer to change the color and brightness/darkness of the light to make atmospheres look more interesting in a artificial way.

Thanks for the suggestion.

You can do this by setting a "dummy mesh" to the light object (like a cone or a frustum)