>>KennyB+(OP)
It's clear Apple define "Hardware" as "Not using the main CPU". They've pretty much admitted it's firmware based, otherwise the T2 chip simply wouldn't be involved to be mentioned.
>>kimixa+Qa
The T2 chip is mentioned in the quoted passage as an indicator of the architecture version, not necessarily an indicator that the T2 chip is directly involved
>>kimixa+Qa
It is implemented in dedicated small CPLD that cannot be flashed by any software means. My understanding of relation to T2/SEP is that this CPLD serves as a kind of "IO expander" for T2/SEP which also hardwires logic like this.
>>KennyB+(OP)
I'm inclined to believe it. If someone managed to prove Apple's lying about it, there would be serious reputational (and other) risks to their business. I also can't imagine how they would benefit from such a fabrication.
That said, I still use "Nanoblock" webcam covers and monitor for when either the camera or microphone are activated.