I followed the same thread with interest and I was even going to post, when they closed it. Like you, I also have notice that when I use to ride with the cygolite 700 on night blinkie and pointing slightly down, traffic doesn't flow like you say. I also have a B&M Luxos U Dynamo light, which I preffer (if I had to have only one) for the beam patter and brightness. When I turn the cygolite on steady low, I notice that the traffic flowed better.
After this dicovery, I started using the front blinkie as a horn to warn potential conflict with cars, specially on intersections or parking exits. However, after reading the blinkie post, I started to turn my cygolite much more aggressively to the road than before, just as you describe, 4 feet in front, and leaving the blinkie on all the time like before. I notice, like you, that traffic flows as like when I had it on steady low.
And that's how I've been riding for the last week or so. I feel drivers can judge my distance and speed better than when I used to ride with the night blinkie on and aim slightly down like before. I'm sure the way the blinkie is pointed down, is not as annoying as before. Not that that was ever a big concern of mine, but I feel it's safer by virtue of the traffic flow and been seen from farther distance, or better said, notice sooner, than just with the Dynamo light.
Double O