I would say its normal. I don't know about how "hot" you're talking about, but both the one on my 96 and the one in my 01 get pretty warm if I dial the dimmer down. Yes, they have melted down, not sure about fire, but the meltdown was common enough on the 3500's (becasue of the added lights for the cab and fenders) to cause a recall for a number of model years.
Kev