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Just wanted to toss in here so (hopefully) if someone google searches it this will come up.

Mostly I see people decrying the benefits of Afraid of the Dark because the amount of dungeons in the game. But after I couldn't find an answer I just tested with Illuminate on a starting character in the rat cave that while the area might be dark if YOU'RE not in a darkened spot, you do not receive the penalties. In other words, the phobia is entirely nullified with a light source resulting in a +2 bonus to Perception without the downsides of a phobia background. (unless you want the strength anyway, just take off the glow-y helmet put the lantern away or de-cast the illuminate)

If someone wants to move this to a post about background specifically that's fine just didn't want to necro a thread.
Great discovery! Prowlers and sharpshooters everywhere can now rejoice.

Of course, now I'm totally picturing the following exchange:

"Psst. What's with the helmet, George?"

"It's a miner's helmet, sir."

"But we're pickpockets, George. What do you even need a helmet for?"

"It, um... protects my head?"

"It also makes noise and reduces your perception. And what's with the head lamp, anyway?"

"Uhh... well, it's NOT because I'm afraid of the dark or anything like that, if that's what you're implying!"

"Oh, kaayyyy.... So then it's like a spotlight, so that your victims can catch you sneaking up on them?"

"...maybe."
If you take Afraid of the Dark, you should be unable to sleep without a night-light.
If you think about it, they have the phantasmal fiend that's meant to be a nightmare apparition...

So if you're background was "afraid of the dark", whenever you were caught in the dark, at random times the music could change to the battle music and those could randomly spawn around you!

Sure as hell would make me run toward the nearest light source!! :)