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...Bicycle lights are not intended to illuminate anything and the legislation that requires a continuous light on a bicycle achieves nothing. The only purpose of lights on a bicycle is to be seen by motor vehicles, to reduce the chances of them driving in to the cyclists. In this respect, a flashing light is not only more economical but also much more effective - they actually make the motorist think (this is not a general slur upon motorists but the fact is that most people drive on auto-pilot)
In lit urban areas maybe, but in my experience, on an unlit road, as a motorist it can be harder to judge the exact location of a flashing light than a steady one
I bet this ensemble was created by a cyclist who had heard the line "I didn't see you mate" once to often [attachment=6023]http://en.wikipedia.org/wiki/File:Lighted_bicycle_jacket.jpg