If blacking out everything below a threshold of darkness adds 3rd dimensional depth, then okay. If it's a feature to skip color ranges (color banding (0x000000 -> 0x000008)) where light trails off, cool beans. Just kidding - I don't accept that point of view.
As for taking images without shadows, it's very simple. For starters, shadows are entities based on light sources, like torches or spells. You'll notice there aren't any in my images. Ambient shading doesn't use light sources, but I didn't have that either. Once you have a light source, all you have to do is
not block it. There cannot be a shadow if light is not blocked. Trailing light is not shadow.
And yes, you can remove shadows in High. Setting Shadows to low doesn't mean every shadow is still rendered. Some reduce in quality, others go away - like crates. No more Photoshop nonsense though, you'll have to try this out yourself

. Keep render quality High and SSAO off. Set a crate under a torch with Shadows on high. There is a faint, blurry shadow under the crate. Set Shadows to medium. The crate shadow becomes more defined and blocky. Set Shadows to low and the shadow is gone.
Thanks for taking the time to rebuild the scene and screenshot it, though. That helps more than you know. I look forward to other perspectives on this problem.