The issue with lights blinding oncoming cyclists and others isn’t really a brightness issue. It has far more to do with how the light is directed and focused.
High-quality lights from Europe (think B&M and Schmidt) almost always have a reflector design that produces a beam that is pointed down toward the ground and has almost no light projecting up and into the eyes of oncoming riders. This is basically the same design as the headlights on a modern motor vehicle. Point your car’s headlights at the garage door, and you should see a lot of light below a horizontal cutoff, and almost no light above that line.
You can see the cutoff effect in this image from Peter White’s web site:
luxos-u-full1.jpg
The roadway is brightly lit, but look a little ways out and you’ll see that only the base of the trees in the background are illuminated. If those were ongoing cyclists, their wheels would be lit, but their eyes would not.
Most US-produced lights, by comparison, have a cone-shaped beam more like a flashlight than a motor vehicle. Their light goes up, down, and side to side in equal measure. It’s this type of light that has the greatest potential to blind oncoming riders, since some of the light they emit will be pointed directly into their eyes.
Peter also points out that there are some cases (like off-road trail riding) where a “floodlight” beam without a cutoff works better. In most cases where you’re dealing with other riders or motorists heading toward you, a cutoff beam will light the road better and is more courteous to others.
So—don’t be afraid of bright lights! You can have great illumination and *not* be “that guy” with the blinding headlight.