I sell these, and own several of my own.
They're pretty honest about the lumen ratings, but they're rated at the element.
However, if I compare it to my EagleTac T20C2, it's nowhere near as focused and bright. That's not a ding; the EagleTac costs significantly more. It's like comparing a stock Mag 2D to a Streamlight Stinger HP; not a fair fight.
I can tell you, that for a sub $30, AA light, it's pretty hard to beat. I carry one every day for basic use, and usually, the bright setting is too bright to use for the inspection/QC work that I do. I use NiMH Sonys in it, and the only downside I've noticed is that when the batteries go low, your high setting basically becomes the same as the low setting. That usually means that I have about an hour of good run-time left before I recharge.
I have dropped mine into ship bilges, which are pretty much the nastiest places on earth, and other than wiping them off, you'd never know. I also dropped mine into lower Tampa Bay, off my kayak, at dusk, and had to dive in after it, about ten feet down. I didn't get a chance to clean it up for about a week, and, other than wiping it off and re-greasing the threads and o-rings, it's been fine ever since, and that was in April. My wife still wonders why I went in to 75 degree water just after sunset for a $30 light, but I really like these things.
TerraLUX doesn't get a lot of love on the CPF, possibly because they're mass-produced and inexpensive, but they're a great value. Tough, cheap, reasonably attractive, and deceptively bright.