As a dev, I think the core issue isn’t whether one indicator LED can be bypassed — motivated people can bypass almost any client-side control. The trust boundary is policy + defaults. If enabling “AI features” implicitly authorizes broad retention/review, users won’t understand the tradeoff until after the fact.

A better pattern would be tiered modes with explicit UX: local-only capture, cloud processing without retention, and opt-in retention/training with visible status. If the product can’t technically support that separation today, that limitation should be stated plainly in setup, not buried in policy docs.