No, the point is that old light indicators were done in software (and were open to exploits), whereas newer indicators have all since moved to being wired right in the hardware. The power of the webcam lights up the indicator.

But most of this 'hardware' is still software. Firmware inside the webcam itself, which could also be hacked.

Most webcams do report themselves to the OS while inactive, so they are actually communicating with the system (and thus powered)

If the sensor is physically getting power, the light is too, unless the wire is broken. They are on the same circuit. It is not a firmware thing, its basics circuits Physics 101. The light could be burnt out, yes. The wire could break sure. But it can't be hacked (minus pulse modulation, not giving the light enough time to light up). But if you power up the camera, and something isn't physically broke... the light comes on. I know the privacy incident has already happened, separate argument. I think people are missing the hardwired point. This discussion should be focusing on the fact that if the camera has powered on, and we see it, it's already too late.