Can we use it to indicate additional information?
Can we make it standard with the other LEDs?
Can we dim it so it's more pleasant to use at night or make it a customisable colour?
I'm sure plenty of other questions take you down the same path and you've just destroyed one of the LEDs most useful functions.
I'll bet it went something like this: As originally specified, the user need was "LED privacy indicator for the webcam." Product management turns that into two requirements:
1) LED next to webcam.
2) LED turns on and off when webcam turns on and off.
Requirement 1 gets handed to the EEs, and requirement 2 gets handed to the firmware engineers. By the time a firmware engineer gets assigned the job of making the LED turn on and off, the hardware designers are already 1 or 2 board spins in. If the firmware engineer suggested that we revise the board to better fit the intention of the user needs, one of two things will happen:
1) They'll get laughed out of the room for suggesting the EEs and manufacturing teams go through another cycle to change something so trivial.
2) They'll get berated by management because it's "not the engineers' place to make decisions about product requirements."
Of course this is all spitballing. I've definitely never been given a requirement that obviously should have been a hardware requirement. I've definitely never brought up concerns about the need to implement certain privacy and security-critical features in hardware, then been criticized for that suggestion. And I've definitely never, ever written code that existed for the sole purpose of papering over bad product-level decision making.
Nope, never. Couldn't be me.
The very first home made monitoring camera I made with a Raspberry Pi 1 and the camera module you could disable the LED in the config.
So it seems to be an old pattern. Definitely would make the most sense to focus on privacy and make the LED hard wired but here we are.
Hanlon's Razor: Don't attribute to malice what can be attributed to stupidity
Chesterton's Fence (worth googling as it's a nice little parable, or it might be a derivation of the parable,can't quite remember): Can boil it down to: if you don't know what something does assume it serves a purpose until you've figured out what purpose it used to serve. In this case I'm implying these people are playing the part of wanting to change the fence without knowing it's purpose.
Nobody sane would hopefully design it this way. :)