Not sure if stupid and missing something obvious or if maybe I need a patch. Resolution is 1920x1080 and I'm on win 7. Is there some other way to attack a torch with a throwing weapon other than switching to combat mode and clicking on it?

Tried going into Combat mode, then holding Alt and clicking on the torch?

No, that's the method. Though admittedly it's sometimes difficult to trigger the throw by clicking ON the torches; I often have to click almost at random on and around them to trigger the actual toss. What I couldn't tell you is whether your chosen screen resolution is making this more difficult (to the point of impossible) for you.