I'll add however I've seen more than one sketchy dev hide behind the "It's just server admin software" angle. I'm not familiar with the software from TFA so I can't comment where that one stands.
For what it's worth: "methods to disable the camera LED" was not a feature, that functionality was provided by an external plugin.
How about if your customers request a function that encrypts the root C:\ and puts up a message with a linked bitcoin address? We still on plausible deniability?
For me personally, the line of what constitutes ethical behaviour has been long passed by the authors of this tool. That is however completely irrelevant, the question is whether they acted illegally. I have a hard time seeing that based on the information available in the media.
Of course, that doesn't apply to all circumstances and all tools that might be possibly used to commit crime, and it's a valid discussion topic on where exactly the line should be drawn; but that line between crime and not-a-crime definitely has some "I'm just producing tools" people on the crime side of it, not only morally but also legally, and not in some indeterminate future, but for as long as some of these "tool producers" have been alive.
Though it seems that I made a mistake about the age of that law - it seems that this particular section of the "1990" law was actually inserted in 2006 with the amendments introduced by the Police and Justice Act 2006 http://www.legislation.gov.uk/ukpga/2006/48/section/37 so it's old but not that old.
Does ssh not qualify as one? If that's the answer you could have just said so.