AR glass + 1 million nits is a quick way to make yourself go blind. In real life, you can either look away from the source of light or shield your eyes from the source of light. But on an AR glasses, you can't really do that.
Nevertheless, the new red MicroLEDs enable the tiny 0.4cc and 1 gram JBD Hummingbird projector to output up to 5 lumens while consuming just 200 mW. Used with optical waveguide lenses, this 640 x 480 pixel projected color display can achieve an eye-level brightness in excess of 1,000 nits.
The light is diffused - slightly over 1,000 nits is what the projector maxed out at actually projecting to the eye, and that includes using the 5 million nit green microLEDs.
That's still bright - but my TV can put out more without me going blind, even when I stick my face right up to it. Not that I'd recommend that, it's still damned bright, especially in a darkened room, but a whole different level from 1 million nits.
You have to remember these LEDs are really, really tiny. Those 1 million nits get diffused across an area at least 1,000 times its size, probably a good bit more.
If they were actually making an array of tightly packed microLEDs squished up against each other, or even close enough as would be required to bring the resolution to 4K, rather than VGA, yes, at maximum brightness, it would probably melt your eyeballs. Probably also the microLEDs, too, though. They're efficient, but not yet that efficient.