Is this an led light on the new iphone?

It's either a proximity sensor or an ambient light sensor.

 

You'll only see it like that on the white iPhone 4/4S. It blends in on the black models.

 

I never got the LED thing. An LED on the side maybe, as you are more likely to see that on your nightstand or whatever when not using it.

 

being on the front or back is better than the side. no every docks their phone and not everyone docks on the left or right side of their bed where the led would be.

 

I would love iPhones to incorporate an LED indicator.. similar to how the non-Retina MBPs have.

 

Ive never been keen on led lights due to extra battery drain and it acting as a beacon to wannabe pick pockets/muggers

 

Would a little flashing light really be more draining than turning on the screen to check if you have any new calls/messages? It might actually save battery since you wouldn't bother turning on the screen until you saw the light or actually needed to use your phone. Maybe?