This suggestion is quite simple, add magical glowing sheep.
If a glowing sheep is sheared, it drops glowing wool (whose color matches the sheep it came from).
Glowing wool emits light, and can be crafted into glowing carpet, glowing beds, and glowing banners, which also emit light.
A magic glowing sheep will grow back it's coat when it eats mycelium (turning it into dirt) or nylium (turning it into netherrack) or mushrooms or fungus.
There are three ways to get magic glowing sheep:
For all three cases, getting the sheep (both normal and magical) into love hearts mode requires feeding them wheat.
Also, for all three cases, the offspring will be magical forever.
Okay, but why should there be glowing sheep and glowing sheep accessories in the first place?