I don't think the problem is really in the flashing of headlights to mean "I'm letting you go", it's in the driver's interpretation of the signal to mean "They're letting me go so I can go". As said upthread, flasher may let you go but others may not.
Other than that, we can reinterpret flashing headlights to mean "I'm claimig priority" as it seems to generally mean in many other places. Or simply "I'm here and: I've seen you/I haven't seen you/ you've seen me/you haven't seen me/etc"