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Isn't that just Half-Lambert that Valve came up with for Half-Life?

"To soften the diffuse contribution from local lights, the dot product from the Lambertian model is scaled by ½, add ½ and squared. The result is that this dot product, which normally lies in the range of -1 to +1, is instead in the range of 0 to 1 and has a more pleasing falloff. "

https://developer.valvesoftware.com/wiki/Half_Lambert

If it looks good, it's correct.