I wasn't trying to say that every installation is legal, just that the claim that all installations are illegal is incorrect. BTW, we don't have a DOT, we have a DFT, thus that info must be for US/Canada
However the info I got last time came from http://www.dft.gov.uk/pgr/roadsafety/drs/hidheadlamps - and the summary line at the bottom says "In summary it is not permitted to convert an existing halogen headlamp unit for use with HID bulbs. The entire headlamp unit must be replaced with one designed and approved for use with HID bulbs and it must be installed in accordance with the rules stated above."
However, the rules it refers to above says:
1. The headlamp unit (outer lens, reflector, bulb) shall be type approved to ECE 98 and be "e-marked" to demonstrate this. That can only be done by the headlamp supplier - Hella, Valeo etc. who must test the headlamp in an independent laboratory.
2. Once fitted to the vehicle it must have headlamp cleaning and self-levelling (which can be for the headlamp or can be in the vehicle suspension - some expensive estate cars have "self-levelling suspension" and that is adequate). Also the dipped beam must stay on with the main beam.
3. The headlamp must be maintained in good working order, kept clean, and aligned/adjusted correctly like any other headlamp.
So, retrofitting can be both legal & illegal, it just depends how you go about upgrading the system.
Although I've had HIDs on both my M5s and I'd guess they've seen 8 MOTs between them, a few VOSA stops and a few police stops without comment.