Any malware that can take pictures can record keystrokes. I want no cover so I can see the activity light because knowing the webcam is on is more important than it being on.
The (pennsylvania?) school district webcam spying scandal got kicked off because a boy noticed his webcam light coming on. If it had been covered would he have noticed?
No, the school district wouldn't have had pictures of him, but they still would have screengrabs, audio, and keystrokes and he likely never would have noticed.
Take all of the pictures of my double chin that you want.
I want to know that my webcam is coming on without my authorization so I can root out the spyware that is keylogging.
Passwords > Pics
If you're the type whose life will be ruined by pictures taken by your webcam, by all means cover it up. I'm too old and hairy to be blackmailed with nudie pics.
Having my passwords leak would seriously cramp my style, though.
And no, nobody is going to waste a zero-day that can reprogram a webcam controller to disable the light (if possible and often it is not) on a nudie-pics malware. They are going to use it to make actual money.