Europe does seem to enjoy its fantasy low-down and dirty. Maybe it's because you guys have to live among the ruins, while it's all just a (sanitized) fairy tale for North America and Japan? It seems to me everything you just described is the very definition of fantastical though as opposed to the grimdark, law vs chaos, low-magic universe of say WFRP...
Grimdark is one side of the coin, like LOW fantasy, but it doesn't work with High fantasy with a capitol H either which is the other side, with magic item shoppes in the middle. In high fantasy everything is mythic and powerful and mysterious and the problem with streets lit by continual light and magic item shoppes is that it takes something wonderful, magic, and turns it into something mundane and everyday. I would accept it if you include it into some sort of super-magic hyper-civilization where it would only make sense but there's something about having a magic item shoppe in an otherwise mundane medieval village that takes away from the quality of the adventure from me. What if instead of shoppes they were vending machines that you could just put your gemstones in and they would dispense magic+1 swords? I'm cool with visiting some dwarves or wizards and getting yourself a mythril platemail forged if you kill the Dragon that destroyed their old city but there's something about the banality of buying magic items that strips them of wonder.
This is why I've inadvertently become the OSR iconoclast - taste is 100% subjective, and the OSR has become all about defining the "right" and "wrong" ways to play/design the game based solely on specific tastes.
Every movement or design philosophy needs to define what it is and is not, as a requirement. The OSR take or emphasis is partly a response to an edition where magic had largely been reduced to a series of crunch-based upgrades, predefined in terms of how much you would find per level, a part of the very measured progression etc. etc.
The examples you cite are single session factors, not systemic problems. Having a single city with continual light lamps is never going to crash a game on its own, having an entire setting that treats magic like a technological commodity and strips the wonder and imagination from a game can be a contributing factor in why a game fails to entice.
I'm going to be a little more careful with how I argue with you because we keep getting into fights. Let's see if we can keep it civil this time