It sure seems like lots more bicyclists are using more and brighter strobe lights. I have no idea what level if any is legal. And the other day I saw a motorcycle with a flashing headlight - really distracting... Can't imagine that being safer than just a regular constant headlight.
Somewhere, there is a balance to be found. It is good for cyclists (and motorcyclists) to have a little something extra that makes them stand out from the light "noise" that cars, street and store lighting provide. But legality should track safety, and safety seems like it should be measured by the reduction of accidents thus if our distraction would result in an accident fewer pulsating lumens should be the cap.