[Leader]

My understanding of the "auto level" feature on the IS300 headlights is that the lights adjust themselves based upon the car's load.
So the lights don't adjust as you go up and down hills while driving, they adjust according to how your car's body is sitting in relation to its suspension. Two football players in the backseat (hope they're short!) would make the rear of the car lower, raising the front-end, which would cause the headlights to slightly lower their aim.
Pretty slick.

 

[Leader]

Daniel - you're seeing things, buddy. Check out this from the IS300 FAQ:

How does Autolevelling HID work?
A computer instructs electric motors to vary the vertical aim of the headlights based on input from sensors in the front and rear (drivers side) control arms. The aiming seems to be done when the vehicle is first started, and does not respond quickly enough to compensate for body motion when the car bounces over bumps and potholes.

 

[Leader]

Daniel - I apologize.
Apparently TEG, who knows a lot more about IS300s than I do, has seen the same headlight behavior you've seen.
So, you are right...and I'm going for a cruise tonight to check out my adjustable beams!