So it seems like torches are a bit overpowered. 1d4 bludgeoning + 1d4 fire damage + light weapon (so dual wieldable). But I understand that they were made useful in melee because it's enjoyable (Aragorn on weathertop attacking people with a sword in one hand and a torch in the other). But having a non-weapon be useful than almost all one-handed weapons in the game is kinda overpowered. As this reddit thread
illustrates, torches are only slightly worse than a long sword +1 in damage. And since AC has been lowered on a lot of enemies and HP increased, the attack bonus of a long sword +1 isn't as much of an advantage in this game as it would ordinarily be. And you can literally find torches lying around dungeons.
5E rules say that attacking with a torch does 1 fire damage, but I'm guessing here they're being used like improvised clubs, hence the 1d4 bludgeoning.
Here is my suggestion:
1. Torches aren't weapons, and they're fragile, so if you keep using them to hit people it should incur damage to the item itself the same way you damage items by throwing them. That way, they can still be useful in combat, but wouldn't last more than one battle or two. Essentially it would work like a consumable, like the Basic Poison that would last you a battle but no more:
a) 1d4 bludgeoning + 1d4 fire damage (like it is right now) BUT each hit damages the torch itself or;
b) 1d4 bludgeoning + 1d4 fire damage + chance to set on fire BUT each hit damages the torch itself or;
c) 1d4 bludgeoning + 1 fire damage + chance to set on fire BUT each hit damages the torch itself
2. You only use the torch to do fire damage. Not using it like a club. No bludgeoning damage but also no item damage:
a) 1d4 fire damage + chance to set on fire (and no proficiency bonus since you're not using it as a weapon you have proficiency in) BUT no item damage or;
b) 1 fire damage + chance to set on fire (and no proficiency bonus) BUT no item damage
I think either of these options would keep torches being useful in battle but make them less overpowered.
Also, somewhat unrelated but it would be useful to be given the ability to throw your offhand weapon as a bonus action (according to 5e rules you can use your bonus action to make an offhand attack with a weapon or throw it). Swing your torch a few times, then throw it at someone ala aragorn at weathertop.