For the sake of simplicity and optimum inconvenience/performance point of view, how about a mix of active & passive lighting? E.g. a very intense, pulsing LED with very low duty cycle (on/off ratio), coupled with abundance of reflectors, particularly on moving parts such as pedals, cranks, ankle straps, wheels, tip of "safety sticks" etc.

Intense light pulses would catch a driver's attention early and the reflectors would keep it there. Also, it wouldn't be much irritating to the eye, as there would be just one pulsing light or two (front and back). Easier to maintain, long run times (due to low duty cycle), decent perceptibility. Seems like a good compromise between cost, convenience and safety.