Privacy

Assuming the system ecosystem is locked down, one could conceivably indicate only for retained camera data. App has camera permission but no internet and no storage premission, ok.

Of course, realistically speaking they kind of tried that with camera modules having their indicators OS controlled, and the practical reality is that malicious use could independently operate the camera from the LED and so the lesson learned was to keep it simple and have the LED control inexorably linked to camera activation at the module level without any sophisticated OS control possible.