Hey Mike D, Have you dropped the bike in a way that the lever would have been exposed to bending in the vertical axis? I think the lever is particularly weak as it tappers towards the joint. My lever has bent on 2 occassions, I have been able to bend it back by hand. How long have you had your set of brakes?
Ger, I've dropped my bike all ways and quite frequently, I think it's probably better that the levers bend rather than breaking the casing at the pivot point. Had the brakes for about a year and a bit.
It's deliberate. As Mike says, if the levers didn't bend, they'd snap or they'd break the lever body. That said, I've never bent mine, although I have bent old XT V levers which have essentially the same design.