There is definitely something wrong with that assembly. I have 4 assemblies total, 2 on the car and two spares ready for modification with HIDs and none of them are as you describe.

At the very least, you should be concerned that the messed up assembly is mis-aimed and may be shining into the eyes of oncoming drivers.

If you can park nose-up to a wall within about five feet or so, you can easily tell if your lights are aimed reasonably well. Shine the low-beams on the wall and you should see a well-defined cut-off pattern that looks like a perfectly horizontal line except for the right hand edge which should flare upwards at about a 30 degree angle.