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Legally? I dunno. Technically, it brings the headlights up to where they were in 2007 so it really makes no difference in my mind. May want to see what it's like behind the wheel though.
I think headlight flashes towards your direction (while driving after the lift is installed) will answer that question. There is no point in blinding on coming traffic. If you go up 4", you will likely need to adjust them slightly, but unless you are doing a Cali lean, it won't require much adjustment.