Just quick update. Managed to implement something that is pretty low cost. Will continue to iterate on it (and the look of the shader) but thanks again for the helpful insights, all!
@Janeator@NickDCarver @chenrong96 I'm using Cinemachine's collision system for large/tall objects which lets you set distance limits and select which layers should be treated as obstacles. It's working pretty well so far!
In @WaycasterGame you start to catch fire when you are in the light. While in flames, you can set fire to flammable objects and even make yourself some temporary shade.
#indiedev#madewithunity#Waycaster