Yes, you're right, I remember similar things from my time in the Navy. This kind of lighting regime is normal in the combat spaces of a ship, even in the daytime.
The GravityLight article does say that it's meant to replace kerosene lamps, which according to Wikipedia range from 20 to 100 lumens:
http://en.wikipedia.org/wiki/Kerosene_lamp
This is about the equivalent of a 1.6 W to 8 W incandescent bulb, so you're right, I was too quick to dismiss the numbers as being too low. They're certainly low compared to what first world citizens are used to, but they are roughly equivalent to what the target users are used to.