Hello,
As the title says, explosions from grenades and ordnance as well as weapon muzzle flash is incredibly weak. On a very dark night for example, it is nearly impossible to see explosions from ~500m away and muzzle flash is quite dim also. I know from second hand experience that for example a sentry taking a drag from a cigarette is visible from quite a long distance.
I suspect that this has less to do with actual *emitted* light levels and more with attenuation over distance in the game engine instead. For example, if a light source is smaller than a pixel it may be combined with its neighbors during eg. anti-aliasing or post processing.
It used to be very vibrant to watch distant firefights and explosions in Arma 2, but that's not the case now :(