I used to have a slow blinkey or solid rear light and had so many close passes it wasn't funny. I got my Moon Shield and have it on strobe (pointed slightly down) and get really wide passes now, and I have never had anyone shout abuse or complain and feel so much safer.
BTW My route doesn't take me into any major towns/city and most of my ride is in unlit country roads, and I very rarely see other cyclists.
Yep, there's definitely happy medium between people not seeing you at all and blinding them As with anything, you just have to be sensible about it.