The heat from an HID is much lower than a standard halogen bulb, so unlikely to be a heat issue IMHO.
I too have used cheap HIDs, but I have had no reflector issues with my high quality 1150 headlamps


I did have a bulb go, but it was replaced cheaply and without any further issues.
My guess at the damage would be piss poor quality reflector personally.
Gotta agree that the bulb doesn't seem to fit right though. Mind you, I'm a luddite and wouldn't really understand these new fangled bits of plastic
LED is a great choice for sheer AAAAAAAAAARGH lights. Just fitted 2 3100lmn Cree quad floods to mine and they are feckin unreal! I have HID on my dipped beam, but when I turn on the LEDs you can't even see the HID beam.
Only issue is lack of distance with LED's imho, they tail off quicker than an HID hi beam does on the 1150, so I'll be fitting an HID to the hi beam to finish the job properly.
Word of warning with LEDs though is to make sure you get a decent reflector for the LED. As an example, I used a couple of H3 LED bulbs as a trial in my micro De's. The light output was an embarrassment because the bulb tries to use a halogen reflector to intensify it's light, and that just doesn't work.
LED's must have individual reflectors on each LED to make them work as a spot/flood light. Otherwise you'll be seen, but won't be able to see yourself.
Hope this helps.
An example of well sorted LEDs is here
http://www.youtube.com/watch?v=WhIg2sQks98&list=UUYua_L2LHqcxOgUXMy7Y7Cg&index=3&feature=plcp
Ps The video doesn't actually do the brightness of these lights justice


