Hi, I had a quick look at the capx. I also tinkered abit with making objects visible but my implementation of my idea wasn't working right. As to multiple canvas' it's for the additive blending of the lights. Each light casts shadows on its own canvas and then it's additively drawn to the main canvas for blending. I got away with just two canvas' since I can just keep reusing the 2nd canvas for each light. The composition will have to be reworked to incorporate transparency so you can allow textures underneath to show through.
Here's a rough idea how it could be done.
I think it's "destination out" that acts as an erase.
1 draw shadows to canvas c1
2 fill canvas c2 with the light color
3 give c1 the destination out blend and paste it to c2.
C2 will then have the lit areas colored and the shadow areas transparent.
4 paste the falloff sprite to that too and then paste it with an additive blend to canvas c3
Do that go each light.
5 you can then get the shadows again with steps like 2 and 3. The shadows should be now on canvas c4.
The only 2 canvas that should be drawn are c3 for the light and c4 for the shadows.
You could then fiddle with the light canvas opacity to adjust the blend.
There may be some issues with the idea since I haven't tested it.