Torches are great, especially with Shillelagh.
But lets be real, Torches stop being good weapons about 5 minutes into the game when you start getting +1 items, where the bonus hit chance is worth more than the 1d4 fire damage a torch provides.
Torches being used as weapons also have the other drawback of being Larian'd. They ignite sufaces the wielder is standing on, which can often mean you end up with your party on fire constantly, accidentally exploding and potentially ruining spells you try and use.
In short, it's not a big deal. Torches aren't particularly game-breaking as weapons and heck you're still limited to only using 1 Torch if you want the bonus damage (Dual wielding torches will keep one unlit and thus not have the 1d4 fire damage). You also lose out on having a second weapon/shield that provides passive bonuses when using a torch (Which doesn't take long to find given the plethora of items even in Act 1 that are nice to just hold for passive boosts). Also, weapon coatings can't be used on torches so you miss out on the 1d4 poison damage from the millions of poison coatings you can find (Or more damage with the better poisons)
It's a similar story for the Everburn Blade. Useful up until level 3, then you find +1 items which are better and more convenient than 1d4 fire damage.
