Yup, seen HIDs fitted to none projector and poorly aligned chav mobiles and they are a menace. I suspect the regulations were put in place with a specific aim to prevent these poor and inappropriate retro fits. This is also probably why a number of retro fitted HID kits within projector lights and correctly aligned have got through MOTs without self levelling or washers.
I've had projector lights retro fitted to my gen 5 Celica and installed an HID kit in them (some years ago now and prior to the current legislation being put in place). I don't have self levelling unit or washers but I have set them up correctly, a little lower than the normal range - as mentioned above - and have
never had any issues with them. No flashes from on coming vehicles, no irrate pedestrians, etc., and they work perfectly well.
When I purchased my Evo the previous owner had fitted clear lensed headlight units (halogen) with HIDs, and to top it off they were for LHD vehicles! First thing I did was remove the HIDs and the lights and went back to standard - inappropriate fitment gone mad! I've since found Auto Bulbs Direct do some decent none HID bulbs with a whiter light and greater output in the 55W rating -
H7 ABD StyleVision +50% 12v 55w bulbs NEW! (pair) - which I've used and found to be very good.
I intend to get some projector style headlights for the A3 and will probably use the above bulbs, no point in getting HIDs retro fitted these days when bulbs have improved notably and you can be 100% of being legal (without the additional expense to make HIDs legal)