Implemented soft shadows. The technique is very similar to ambient occlusion. Instead of taking samples along the normal at the surface, it takes samples along the ray from the surface to the light. This roughly estimates the distances of the surrounding object to the ray of light, creating an effect very visually similar to soft shadows. Therefore, this is "fake" empirical soft shadows and is purely geometry based.
Here are some results of just the soft shadows component. I personally think they look very nice, and I am questioning the need for the diffuse lighting component at all.