Just to add my experience to this useful thread.
Mrs_G's Doblo still has the original headlights and at 9 years / 450,000 miles old they have faded in the sun and been 'sandblasted' with road grit. The deterioration seems to have accelerated over the last year and so with nothing to lose I've started the process of restoration.
The lenses on Mrs_G's Doblo are plastic. After washing them I tried car polish (didn't touch the damage) and T Cut (same non-result).
Time to bring out the big guns and a spare pair of underpants!!!!
I tested a small area using 1200 grade sandpaper. OMG! I think I've ruined the lens. But after cleaning and then following up with T Cut the difference was remarkable.
Feeling much braver I set to on the whole lens with the 1200 sandpaper. While plastic was clogging the paper and covering my hand but I carried on sanding away. After cleaning the lens and then polishing using lots of T Cut the lens began to look much better. Having proved that this works I stopped and applied a protective coat of MER polish. The lens is still some way from 'as new' condition but it is way better than before. When I have time I will give it another go and see how much better I can get it.
In the meantime here are a couple of pictures.
1. Showing the passenger side, as yet untreated. The driver side was just as bad. (click on the yellow bar at the top of the picture for the close up).
2. The driver side showing the results of 30 minuets work. (click on the yellow bar at the top of the picture for the close up).
So if your headlights are in need of a bit of tlc don't be afraid - it's easy to do.