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The light only tells them after their camera turns on, so it doesn't address their concern.

Neither does a camera cover given no one will remember to always close it after calls.

The hardwired status light is far better, you know as soon as you’ve been hacked, and well before they are likely to see anything compromising.

Privacy isn't binary. It's a spectrum. A light and sometimes remembering to close the camera cover is better than a light and no cover.