Lights

Flashing lights are a constant stream of data - 0s and 1s

Flashing lights may be a constant stream of data, but they are a constant stream of inconsistant data, varying between active and inactive. In cases where constant processing is required, a consistant stream of active data is much better than one who's state varies.

so, going back to our data:
010101010101010101010101 - flashing light
111111111111111111111111 - solid light

That can only ever represent a single stationary light, flashing over time, as soon as the light starts to move, you're dealing with at least 3 times that amount of data for each point (postion in 3 dimensions). Even if we just add the streams of data together, we'd get something like:

040404040404040404040404 - flashing light
444444444444444444444444 - solid light

This shows us that the solid light is giving 96 data points, whereas the flashing light only gives 48. Thats 50% less data, mostly relating to the position of the light. The error value in calulations about speed and position is made smaller by having more data, so a constant light gives that.

Therefore a constant light gives a driver more data about your position on the road, and your speed, than a flashing one.

I'm not saying that a flashing light doesn't help to draw the drivers attention to you, thats a whole different ball game, that involves biology and stuff, more that once they have noticed you, a solid light is likely to be better for them not hitting you, therefore the suggestion that we should have a blinky and a solid light would seem a sound proposition. Maybe someone should make a light that has a solid light in the middle, with disco lighting surrounding it in a random pattern?

Now, who would care to point out where my maths/physics/other stuff mashup is wrong?