Have you checked how often the puls updates? It doesn't have to turn off the green LED in Pulse when using electrical method. Read my post again. It can have both methods running and toggle between them instantly depending on whether you are touching the crown.
It uses the green LEDs for workout, not infrared. So if they had to ditch anything, it should be the infrared LEDs, since the green can do all puls related at lower power. Infrared/red however can measure Pulse Ox. But I am not aware that Apple measures that, though I think the hardware i capable of it. I have a garmin Vivosmart 4, which uses green LEDs 24/7 (Apple Watch only measure every 10 minutes) to measure HR and with very very good battery life. I has the option of measuring 4 hours of Pulse Ox at night (or on demand measurement). That uses infrared/leds, but impacts battery life noticeable and unless you are traveling in thin air or has Sleep apnea, there really is no reason to use battery on it.
So if Apple doesn't measure Pulse ox or anything else specific with infrared, I have no idea why they use for background measurements. Maybe it is more descreete at night. I know the green flickering from my garmin is noticeable visible in bed.