Sounds similar to my Cateye LED, it is very bright if you look straight at it. I've wondered about angling it downwards so it's less in the face of motorists... but nah, b*llocks, I have had so many cars drive with no regard whatosever for my safety that I need to be as visible as possible... I get dazzled by their lights anyway.
Thinking about it, maybe the difference between this LED and my old halogen is lateral visibility - the LED is very bright if you look at it straight on, but even slightly to the side and it becomes a lot less visible... maybe I need to look at ways to address this.