In reflectors not specifically designed for the XR-E, the metal ring that spaces the glass lens on the LED creates circular artifacts that appear as rings around the hotspot that the reflector throws forward. This is because the lens/ring system on the XR-E was designed to maximize lumens out the front of the LED.
The XP-E has a different dome on it, allowing for a more typical radiation pattern akin to that of the luxeon power emitters, seoul semi emitters, etc.
So before, you had lambertian emitters (luxeon 1,3,5, k2, etc., seoul semiconductor p4, p7, countless generics, etc.) and then special ones like side-emitting, batwing, and the forward-focusing of the XR-E. XP-E is just a different package, and allows for more applications without finding specialized optics.