Love it how paranoid people are.
That is absolutely not the case. It has been proven many times that the camera can be turned on while not having the light on. Also, anyone who knows a little bit how software and computers work, also knows there is no such thing as 100% privacy or encryption. One of the famous mathematical impossibilities is writing perfect software. Can't be done, which means some slight chance of hacking is always in the cards. You might also consider situations where the little green light is meaningless - take for instance when you're sleeping and the laptop is open for some reason or other.