I also have a Hypershot, and have also had a fellow cyclist exclaim that it was too bright.

When it is in steady-on mode, you can adjust the output level so that it's not blinding. The controls are not at all obvious—something I dislike about the light.

There are taillights out there that paint a "lane" on the ground, which may improve your conspicuity (Lezyne has this, I'm pretty sure I've seen others). There are also illuminated cuffs you could use if you're into that sort of thing