You're right, my lighting is kind of off. I will move the point lights on the upper rocks down lower so they look more like they are coming from the lanterns. There is fog in the scene, but it isn't very thick. I didn't want to drown the scene in fog, but I will play with the fog strength a bit. A mist and/or dust particle effect sounds good, i'll make one the next time I work on it.
Also you are right about the specularity, I never thought about the dampness of the area. I'll tweak my spec maps a bit as well. As for the statues, I didn't want them to stand out too much, but I will play with the lighting a bit to make them more apparent. I'll post some updated shots soon