Currently the flashlight is held with both hands at waist height as it was a pistol, this is both unrealistic as well as causes an offset between the flashlight and the center of your view. It would be better if the flashlight would be held at head height at the side of the head with one arm.
Random picture for reference (ignore the pistol in the other hand)
http://www.policemag.com/_Images/blogs/M-Low-Light-Shooting.jpg
I also noticed it was impossible to point the flashlight in the direction needed. Surprised there are not more bugs like this to crosslink/mark as duplicate.
I already logged this here - http://feedback.dayzgame.com/view.php?id=1730
Not 'exactly' the same but the same end result, torch points where you're looking not where you're walking.
http://feedback.dayzgame.com/view.php?id=1730
0001730: Torch Light needs to follow head tracking, not direction 'body' is facing/walking