I don't understand why people have window curtains and close them at night. If you have them closed then you can't see the person spying on you outside. Door locks are more important.
This is what you sound like. The things can be used in conjunction with one another. It is not an or scenario, you can have both. You can also have covers which don't cover the indicator. You use different deterrent mechanisms for different threats. It is as simple as that.
I live in Los Angeles. If there's bright lights outside, it means the guy down the street is being an asshole again (he keeps rearranging his outdoor sensor light to point out at different parts of the street) or someone kicked a neighbor's garden lights (why do people even have these?)
Except to use your metaphor, software control of a webcam is like closing the blinds and putting a physical cover over the lens is like covering a window in aluminum foil in addition to closing the blinds.
This is what you sound like. The things can be used in conjunction with one another. It is not an or scenario, you can have both. You can also have covers which don't cover the indicator. You use different deterrent mechanisms for different threats. It is as simple as that.