From the 2005 New Car Features book (Toyota service manual designation NCF275Ub) for the Camry:

"The headlights on the SE grade model have been blacked out to achieve a sporty look."

"The taillights and stoplights have been placed in dual cylinders located in the vertical center of the rear combination lights, in order to achieve a unique look. On the SE grade model, the headlights [sic--presumably taillights are meant] have been blacked out to emphasize the dual cylinder lights, giving the vehicle a sporty look."

The 2007 New Car Features book might have an explanation of why the blacking out was abandoned for the SE trim level, but it might be buried since this was the first model year of the sixth generation. For recent Camry design generations, the NCF book has run to more than 200 pages for the first model year of a new generation. I do not have a copy of the 2007 book, though it (as well as all 1990 and later manuals) can be downloaded through Toyota's TechInfo site.

 

Im not 100% sure about the 07-09 but from 2010+ all SE have smoked out headlights. I thought the 07-09 had it smoked out as well.