I had the same question Marlin did. A candle lantern is great for taking the chill out of a tent but as far as a non-tent situation goes, I'd look for a small LED light (button batteries perhaps) that fit in the kit. Light on demand would actually be a good addition I think. A candle for a fire sure but not for light.

Wet birch bark lights with some time over a hot flame but there's always pitch and that doesn't get wet. Plus, you can always find dry tinder under something.

I often think about what I'd do in the different circumstances I encounter as I paddle along. When I think of an emergency situation, I think of dumping and having to abandon it all and swim upwind. Fire is never high on my imagined priority list as I hit shore. (I always just hope I'll not be presented w/ a cliff. :)) If there was a good place to start a fire safely, out of the wind ... I'd consider it. Getting wood would warm me up at least but after that, I'd be stuck tending the fire instead of watching for possible help and where my canoe/gear might be washing up or baring that, looking for stuff to make shelter....

Good to know about Carmex in a pinch. A nylon sheathe would work too I bet.  :D