[fletch]

I'm not sure how much a lower ISO would help with a sharper picture. It would reduce noise but I can't see any in this picture anyway. That's asuming the overall exposure stayed the same.

To get rid of the blown out section in the oncoming lights you would need to reduce the exposure, either by adjusting one or more elements of the exposure triangle (Apperture, shutter speed or ISO) or change the ammount of light in the scene (less cars). My view is that just by adjusting the exposure you would still blow out the lights as they are so much brighter than the rest of the scene. By reducing the ammount of lights the effect would be less distracting to the rest of the scene.