If you want to reduce the current some, using a cheap resister method, on the output to the led, try about 1 ohm and 1/2ohm.
Use an online LED calculator like this
http://www.superbrightleds.com/led_info.php
Figure both the high(est) voltage and lowest voltage of the power source (battery).
Toss in some relevent voltage for the LED , like around 3.7V.
Get some close enough resistance ammount from the calculator there, remembering that resistance is everywhere already, springs and wires add in small resistances already.
Put a bit of resistance IN the curcuit, between the board and the led, and check it with a meter or your eye, to see where your at. The resistance will need to handle the power shown in the calculator, so it usually needs to be a 1W resister, with no cooling available.
I have some of the same junk here, and the high voltage of the li-ion or even 3X ni-mhy drives the led hard. Small ammounts of resistance will stop the insanity, drive the led more normal, and increase the runtime.
They do this because it is cheap, it is very bright (overdriven), and it works for some time then destroys the led. (for the price of them you could just buy more and destroy them too
The "better" thing to do might be to put one of them 7135 (regulator) driver things in, the "glorified resister" or replace the non-driver that you have with a real driver.
I think everyone called it pretty well, its a "Direct Drive" , with PWM, I wouldnt try messing with the setup there, because there isnt anything to "change".
Add some resistance to the main power, to reduce it some, or replace it with a real driver. (because a real driver wouldn't cost any more than stacking pwm to a real driver)
I would/have tossed a resister in, to make the LED more long term, but I would want to switch the resistance Out again (switch or button), for both higher drive currents, and when the battery voltage is lower. Without a switch , I would probably want that glorified resister thing, or driver. Each has its pros and cons.
Use any one of the LED calculators, and change up the battery (input) voltage, and current, after making selections, and you will see about what happens (in math).
Long term dwindling outputs have some really good advantages, but many people would not like them. If you get a ~350ma drive at say some ~3.9v of the battery ~1/2ohm (0.5ohm), the rest of it will work close enough. Cheap easy, get it done, and "fix" what is junk, to usable junk and its good to go.
It Looks like there is even space on the board to tack in 2X 1ohm (1/2ohm when parelleled) tiny resisters, and move one wire over to L-. (to small for me to do though) adding small resistance to the - there. like yellow said