Unfortunately, they just thought the laptop is buggy, since it was not obvious that this feature existed. This person is also a lead on a consumer hardware product at the big company, and is aware of general privacy shutter features etc. In this case, the issue was just that it was not obvious that there was a privacy shutter on the laptop.
I've had mine for over 2 years and 2 mbs and never really noticed. I never use the webcam.
I agree though, I would rather it be invisible unless I look specifically. Just the meaning when I DO look should be obvious, and orange for inactive is not obvious or natural to me except in maybe parachutes.