Thanks for a nice review :)
Well, the idea is to force the player to execute some well-timed dashes and flicking the lantern on and off to both avoid the evil spirit and the horse at the same time. So the lantern doesn't cost anything, it just prevents you from dashing and jumping which you need for platforming and for making it to safety when the horse comes.
About the hair... I (the programmer of this entry, but usually an artist) was supposed to make most of the characters and animation work this time around, but I only managed to make the horse and the idle animation for the main character before we realised I had to focus almost exclusively on programming instead. So, what happened was that with like an hour or two to go Ulf had to create the run, walk and jumping animation for the main character. So, the hair was actually rushed! But I agree, it looks amazing and Ulf did a phenomenal job :P