"Please explain, in practical terms, what you think the difference is between something that is equipped and something that is in your inventory. What does it mean for something to be equipped?

For me, something is equipped if and only if it is in your hand. Everything else is in your inventory. That bow on your back is in your inventory."

They are equipped in the equipment screen that comes up when you hit "E". And that is different than being in your inventory because they are shown as being available on your character. Everything that is not equipped on the "E" screen is in your "pack." I know they don't show the backpack or whatever sort of pack it is. But there has to be one or else your arms would be holding a huge stack of stuff. But if you have both melee and ranged weapons equipped on the "E" screen, and your melee equipment is in hand, then your bow or crossbow is shown on your back. If you have your bow or crossbow in hand, then your melee equipment is shown on your back.

Maybe I shouldn't be using the word equipped for both. It might be better to say you have one set "equipped" and the other "at the ready." Anyway, the implication is obvious that the "equipped" and "at the ready" sets can be swapped easily. Which is why they don't charge you an action or bonus action to swap between them in combat. And I'm good with that. I don't want that to change, even though in the real world you would never be able to swap weapons that fast. If they started charging an action or bonus action to swap them, then it would make fights harder for classes that use both.

My point is that it would make even less sense to find yourself in combat and take the time to remove your pack, stick your torch back in it, and pull out the weapon that you stuck in there when you equipped the torch, all while your attacker is waiting patiently for you. And none of that costs an action or a bonus action. I was thinking it might make more sense - assuming they add this "torch slot" that someone mentioned - for when your character finds himself in combat, to drop the torch on the ground as soon as they equip either their melee or ranged weapon. It would make more sense than taking the time to put it back in your pack. And it might even be helpful to have that light there during the fight.

Outside of combat it wouldn't matter since you presumably have the time to pack the torch away safely.