The shots are from a co-op mission flown by IIJG53:
http://iijg53.com/
The Nav lights are so we don't shoot one another down so they have a real purpose. In IL-2 AI can't see so lights camo etc don't make any difference to them but when you have up to 12 pilots in the air all on the one side it makes it easier to work out who to shoot and who not to.
If you are interested the Aussie schwarm normally flies on Sunday nights at about 8pm AEST.