For anyone else who won't even consider a phone without a jack... I'm much more excited for the upcoming Asus Zenphone 9, which is roughly Pixel 5 sized and slightly smaller than the standard iPhone size, and features a headphone jack! It's the smallest (and headphone jackiest) flagship in quite some time, slightly smaller than its predecessor.
I came to two possible conclusions - 1) it's about engagement, and for some reason companies want you opening your phone often, or 2) so many apps notify for everything anymore, the LED would just constantly blink. At least 2 could be solved by only allowing certain apps or classes of notification (like say, phone or text) notify the LED.
I used to consider it a required feature when buying a phone as well and would carefully configure the colours of each app and their priority.
But these days I am happy with the default Android always-on display and a row of icons for the notifications. I can imagine that some people miss the colour but the detail offered by the icons makes it much easier to know what notifications you have.