This is indeed a huge problem. My work route leaves town and follows a country road for around 1 km. No street lights, no other light source at all. On dark evenings without a moon, I often see virtually nothing when a cyclist with one of these super-bright and wrongly aimed LED lights is comes towards me. I typically have to slow down and shield my eyes to avoid crashing into them. It is really dangerous. Never encountered this problem with older bikes / lights, not even with cars. I guess front lights for cars are better regulated.

That being said, a cyclist without any lights at all emerged out of a pitch-black night 3 meters in front of me a few weeks ago. I only narrowly avoided a frontal crash. I prefer ultra-bright lights to this.