With regards the self-levelling, I think people think they adapt dynamically and super-fast under all driving - AFAIK they are essentially load-levelling motors so that they don't point up if you have, say, 5 adults in the car and lot of luggage. So as long as the beam is set correctly they should be fine with OEM xenons. Technically illegal, yes, but not blinding unless they are set too high.
They don't adjust that much under driving afaik (maybe under a bump but it's have to be big!?), someone once mentioned about blinding other traffic going up hills etc, this happens with any lights, xenon or otherwise because your view is momentarily lower than the headlight beam of a car coming over a hill. If they dipped down up a hill, if it was steep you'd have no lights as they'd point vertically (ie 2 ft in front of the car!). Similarly they would point to "horizontal" coming down a hill which would make then super blinding etc.
The self-levelling is just to ensure they are at the proper height for the vehicle based on a sensor on the rear axle and one at the front (it's not a spirit level!). It's just that it's automatic to ensure they do stay at the same level with this (now not so new) brighter bulb technology, that if they were out of alignement would be much more blinding than an out-of-alignment halogen headlight.