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First I though this MOD for spotlights, but a dynamic light could be used for fires in a city.

Great idea ROne.

Maybe it would be possible to attach the small dynamic light to a parafrag bomblet to get a working parachute flare for target marking? I suppose one would have to reduce the bomb explosive effect to zero, or as near as possible. The ideal would be that the dynamic light 'burns' for the duration of the bomb's descent and even after the 3D bomb model has struck the ground and disappeared. (This would work well with Jolly's 'cookie' Mosquito, carried as a mixed bombload - cookie and slow-falling marker flares).

If the small dynamic light could somehow be triggered to come on by the explosion of a bomblet (maybe replace the crater decal by a small dynamic light), one could simulate the long burn times of incendiary bombs. Perhaps a bright white or yellow would be appropriate for phophorous incendiaries?