The problem here is that the led was software controlled which always struck me as more of a bandaid then a solution.
A proper hardware switch solution would mean the led and webcam are wired so if the webcam receives any power the led jumps on. The computer shouldn't even know that led exists. Not sure how many devices actually do this though.
The tape on cam solution works on video but might still record sound which is in many cases more dangerous for sensitive information.
Of course one also has to wonder how much it matters having typed this on a phone with cam and microphone uncovered and no indicators.