YES! I’m super excited that the “lightsaber cutting out” effects are going to be included - I’ve been in love with the concept since I first saw MR’s tests.
Jar Jar is right, the way Daisy Ridley seems to be reacting, it’s almost like the shot was made for the saber to die.
To get around the lighting issue when Rey is standing, maybe it shoots a shower of sparks out as it flickers? The sparks would serve as the source of the light that’s in the scene, and Rey would then shake her hand as if the sparks have burned her. That also ties in with the idea that the lightsaber is unstable - it’s not just about to die, it’s about to explode. Violently. (Like Rey.)
Definitely agree that sound will be massively important for the effect to land.