Sorry, I haven't been around for a few days. No they're not legal, but as suggested in some of the responses, poorly installed HID's are a problem. E3s and VFs have good quality projector lens and therefore have a clear and sharp cut off. I have tilted my headlamps down below standard cutoff points to minimise interferance to other drivers. HID's in high beams are not illegal in NSW, but of course, you have to turn them off a longer distance when other cars are in front of you compared to halogens and sealed beams.
I have had HID's in all of my cars since 2003 and never ever had an issue on the multiple occasions, the boys in blue have pulled me over for RBTs, or just to have a look. Maybe my age helps there (I am over 50 now). Not sure if my son would get away so lightly driving one of my cars.