But the article did mention he was hoping "anxious parents" would use it to monitor their kids activity.
As a parent of two teenagers and a twenty-something I could see myself wanting to turn on a web cam without them knowing it. I hate to say it but my kids get up to some crazy stuff on the web and have defeated a lot of my efforts to monitor/block that activity. In the end I've had better luck just sitting down and talking openly with them about it. But there was a time where I was frustrated enough that I might have sunk to plain old spying on them...
Anyway, that's just one use I could see for disabling the cam indicator.
And the article does mention youtube videos and how frustrated he was to see what people were doing with the tool. He even added a "feature" where the user's license number was displayed in the program so if he could see it in such videos he could disable their copy. Did you see the actual author in any youtube videos?