Actually the projector based HID lamps you guys are talking about are for the most part, OEM street legal and DOT approved HID systems.
The projector produces a cut-off, and while the cutoff line is around where your bumper is, when the car hits bumps and hills, your cabin can go under the cutoff and get blinded by the light.
What is really annoying, is IMPROPERLY AIMED headlights, halogen or HID, pointed all the time right into your face.
I have done aftermarket HID, halogen projector upgrade, and now a full retrofit of a OEM HID system from an Acura TSX into my old BMW. Unfortunately, the annoying blue flicker you are describing(refraction), is just a function of how projectors work, and more and more cars are starting to come standard with them(ie. hyundai sonata).