Gordon,
it might be worth looking at a different sensing mechanism fot the "theremin torch" - I usually abhor "theremins" based on sensing other than capacitance - but for this application, I think ultrasonic distance measuring would probably work better.
The capacitive "torch" could have a problem with frequency stability - the grip applied will affect the ground coupling, and therefore the pitch - also, if being used while walking / dancing / cavorting, the bodys capacitive coupling to ground will change.. you may get less coupling when standing on one leg, and more coupling if kneeling..
Optical sensing is probably not a good solution, as it will depend on the sensed object being reflective, and on the reflective angle being usable..
Ultrasonics would, I think, be the best option - particularly if the sensed objects are large and acoustically reflective.