I have been running the event, and a couple of bugs, plus things people here haven't talked about:
1) Some of the MistWalkers names are incorrect
2) MystWalkers can also be champions (Bug?)
3) The lanterns from Zuria say to take to Barston in the description, and those from Barston say to take to Zuria
4) If you have lanterns before you reincarnate, they stay with you in the TR Cache (I did a racial), and you can continue them after a TR (i.e. the durability gained in one life continues to the next)
5) There is no differentiation on the icon between the hardcore (Skull) lanterns and the regular ones. (Turns out there is a small skull that is hard to see on the hardcore versions).
6) I got a MystWalker in the intro quest at level 1
7) As others have said, a cosmetic slot would be better, but I don't believe those slots can currently give effects (i.e. Death Block and the clickie), though I may be wrong
8) I can take all 8 Lanterns at the same time
9) While using a hardcore lantern, upon death all hardcore lanterns are removed from your inventory, AND non-hardcore ones that have some duability added, but the ones with none stayed. (The lanterns were in my bank)
10) Like the hounds hardcore, if you die, the Mystwalker stays.
11) You can pick up the hardcore lanterns as long as you are level 1, however, it resets your XP to 1070 if you have more than that, however, I kept the action points for the ranks above that.