Yep, that's right - I think its a subpatch problem you've got there with the falloff. If you do want to create the sharp falloff with subpatch turned on, all you have to do is select the polygons in each section of the lamp, cut them and paste them so they are not connected to the next section. That way, they still look as if they are part of a whole object but will not smooth out with the ajoining polygons as they are no longer connected.
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