I think the track lighting with small hoods and small 40 watt bulbs results in the lowest amount of glare.
I've been modifing Lionel switches so they make closer sidings. I cut the switch machine part off and also cut the straight off at the frog. Then I put the switch machine onto the other side and painted everything.
I think you can never have enough lights on the layout so I made sure the lights work. The switches don't work, but that wouldn't have been much more work.
Here's some photos:
I need to cut track, but it's too late at night to fire up the chop saw in the garage.
I'll put a bunch of freight cars on the sidings.