The problem being solved there is being able to see further in the dark.

Full dynamic LED headlights are actually a pretty cool innovation. They're brighter, they can illuminate corners, and they can avoid blinding opposing traffic by selectively deactivating or dimming parts of the light field. (I don't know if the Model S specifically has that latter feature though, but it's one of the big selling points of the technology.)

Keep in mind that these are high-end luxury cars we're talking about. Folks don't buy a new Mercedes to get halogen headlights. They know it's expensive and are okay with that.