I must say I'm quite shocked at the vehemence of certain posters in their determination to see the dot on displays without menu bars be made a permanent feature, without the user option to override the behaviour, as users currently can, with firewalls, passwords, full disk access, encryption, and many other far more important OS level security features.
It should also be borne in mind that any third party app, if it can even be installed at all without significant input from the user indicating that they really, really want to install it, has to be given explicit password protectable permission to access the microphone (and therefore any audio input) when it is first used, and that the list of applications permitted to access the microphone is accessible in security preferences and can be checked and amended at any time.
Surely these safeguards, and the permanent 'mic in use' indicator in the menu bar control centre should be enough for any user to be satisfied their audio inputs are secure from malevolent use, without them proselytising further measures which significantly impact a large number of users in the AV industries, many of whom have been using Macs for over 30 years, precisely because they have been a great platform for use in live theatre and events, which the orange dot issue immediately stops them being.
I also don't see any evidence of these posters having complained about the lack of any indicators at all, when third party software is making screen recordings of other applications, or key logging, which would seem to me to be a much greater threat to their security, so quite why they have picked this particular issue to be so vociferous is quite beyond me.
The logical end result of these demands for fanatical high levels of security would require Apple to remove all the Accessibility features which allow third party apps, with permission, to control most aspects of a Mac's operation for the benefit of those users requiring assistive technology, which would really be a sad day, if it were ever to happen.