I really think an LED is barking up the wrong tree. A built-in hardware cover would have the same effect as the LED, and no one would have to trust it, since the camera would just be recording the back of the cover if it was hacked in stealth mode.
https://www.youtube.com/watch?v=IKY3hvYKPpA
Too bad it mainly shows your nostrils :(
I do physically disconnect or cover cameras. My desktop computer has no microphone unless I plug one in. Laptop and phone though? I definitely remember in the aughts that the police could remotely turn your phone into a bug without any user indication at all. To the best of my knowledge the only way to actually be sure you aren't being recorded with your own equipment is to remove power... of course now the batteries are soldered on, totally a coincidence I'm sure.
Boy, wait until you find about what's possible manipulating PCB or processor designs (the Bloomberg fiction piece "The big Hack" illustrates what would be possible with just PCB manipulation). Or firmware or anything else proprietary running with elevated rights (normal ones are already enough to cause a lot of damage on most systems).
All you can do is reduce attack surface.
Well, I don't mean to fuel your paranoia, but there are materials opaque to the human eye but not necessarily fully opaque to a CMOS sensor, especially one without infrared/UV filters.
It would be quite possible, trivial even, to design a web camera with a nice built-in black camera cover -- which is transparent to the camera.
If your laptop (or iPad, in the case of the latest gen) is an Apple T2 equipped device, this is somewhat relevant (“somewhat” as it’s not directly related to my original reply)
https://support.apple.com/en-gb/guide/security/secbbd20b00b/...
A better solution would be to have the microphone be physically removable, but even then it could have an internal power source and storage...
EDIT: a commenter below said
"Macs newer than 4 or so years also have a feature that forces the LED to stay lit for at least 3 seconds after it has been turned on to prevent the single-frame-grab attack."