Do elves, orcs and dwarves see in total darkness? Multiple references in the stories tell of these creatures (at least partially) relying on torches or lamps of some sort.

Are the bonuses that the Elves of Mirkwood receive in the dark compensate for combat complications triggered by darkness and low-visibility, or are they absolute?

Glorfindel

I have always assumed that the ability of the Elves to see in low-light was represented by the Elves Cultural virtue. The "keenness" of the particular elf's senses (hearing, sight, smell) is represented by using the favored attribute rating to cancel (possibly only partially depending on the +1 thru +3) the darkness modifiers.