I am semi inactive and will be for another week. That said I can't sell torches but have sold quite a bit of armour and weapons. I still maintain that the parties shopping strategy sets them up for entering quests under prepared.
Most of the things my shops sells are of very little use to start up parties. So if I do sell anything to the newer parties my reputation then flows downwards. I'm sure this will change once they start doing the harder quests though.
Perhaps shop layouts (or shop sections existing within a shop) should limit the experience level of parties that visit you?
