I share your concern. I had the camera down at less than 3 feet from the ground, so the glare shown here is worse than a driver sitting a foot higher and more to the right. There clearly is a great deal of "stray" light going upwards that does nobody any good. I am working on a solution for that right now. Once I get it perfected, I'll post info regarding my approach. The initial testing is encouraging, but it's not ready for prime time yet. However, I should note that I've put about 350 miles on the bike since installing the lights, mostly on two lane roads with oncoming traffic. So far, not even ONE driver has flashed their lights at me. This was all before I started my masking experiments, so lights were at full blast.
Ultimately, I would like to have light projecting directly forward, and as widely to left and right as possible. What I want to avoid is any light going above horizontal, or downward onto the road directly in front of the tire. My testing involves masking part of the lens, such that the upper and lower curves of each reflective parabola are blocked. Using aluminum tape, I was able to significantly reduce glare at the height of an opposing driver, and also reduce the very bright patch on the road surface, without affecting the "down-the-road" lighting much at all.

I am trying to decide how best to implement this on a more permanant basis. I'm considering using black paint on the inside of the front glass "lens". Aesthetics do play into my final decision, as well as economics. Should have this figured out and posted by next weekend.
You may note from this picture that I have also removed my 3/4" spacers and replaced them with 1/4" spacers, to move the whole light closer to the fork leg. Out of view, at the inboard end of each spacer are two stainless steel 3/16" washers, which serve two purposes. 1) They distribute the pressure over more of the fender plastic, and 2) they provide necessary clearance. Ideally a 5/16" or 11/32" spacer would be more suitable. My spacers are acually cable ferrules, and I may still replace them with a ferrule for a larger size cable, which would be both longer and thicker.