Correct, the LED option appears to be the way to go. However, they need DC or must be wired up with capacitors and diodes for AC. That is the next phase of the project.
Right now, A 12V AC regulator, 25W/25W headlight and 5/21W tail light gives great results. Voltage at idle is 9.5V, rising to a maximum of 12 with increased revs.
Regards
David