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I reckon most people outside of enthusiasts just want a light so they can ride when it's dark. They don't care what it is, cheaper is better hence the number of those shit silicone blinkies you see. The police were even giving them out at one point. It's a box ticking exercise.
I don't think we'll see widespread adoption of dynamos unless manufacturers start speccing them from the factory on bikes.
The lights are expensive, require wiring and a whole new (also expensive) wheel or at least wheel rebuild.
£200 minimum Vs £30 for battery lights
PhilDAS
Rather than design a better bike light, I'd say launch a campaign to raise awareness of dynamo lights. IMO most modern LED cycle lights are pretty ok, the main barrier and safety issue is that its hard to remember to charge and put lights on your bike in the first place.
Because of cultural issues, most UK cyclists aren't aware of the existence of dynamos. I'd just encourage more people to use dynamos in everyday cycling.