I have a set of depots on my tahoe and there's 2 significant hot spots. It drives me crazy. Right now I just have some 5000k HIDs in my stock denali headlights
The Tahoe lights do create hot spots even with just the halogen bulbs. Best would be to get a new set of clear bulbs and retro in some decent projectors. I don't think there is anything else that you can do with those lights to achieve the quality you are after. Also....I may be wrong about this so please do your own homework but better projectors may even help the denali lights. No mods needed as it is just a plug and play with adapters that some sell.