You have excessive resistance in the wiring loom. Most likely the switches.
Best solution? Start cleaning the contacts everywhere in the loom. Possibly replace/take apart the keyswitch.
Basically it is a bad design for long term. All the power flows through contact points that build resistance as they age. My keyswitch ate 4 to 6 volts before cleaning, and 3 to 5 after.
Ended up putting a relay switch in from HondaMan. Now I only see the dimming at idle, full light at 2000RPM.
And yes, that is more or less normal.
Doing the cleaning and the relay will take the load off the underpowered charging system. It is really just barely powerful to keep the system charged when running the headlight.
Part of the problem is 35w headlights can be a pain, and many people put in a H4 system with 55w bulbs.
Changing to a Phillips "green" bulb that reduces the wattage by 20% but still puts out the full light of a 55w really improved my charging issues:
http://www.amazon.com/gp/product/B00318V0B6/