Here's the most informative post/discussion I've found on the topic of the green light and camera: http://www.ifixit.com/Answers/View/141508/
Even if the green LED were hard-wired in series with the power going to the camera chip, a Bad Guy who managed to hack your machine could still take snapshots of such brevity that you probably could not see the LED blink.
If this whole thing is a concern to you, do the tape trick. But I'd suggest using a translucent tape since the Ambient Light Sensor is adjacent to the iSight camera in at least most models.
And while you're at it, get a plastic "dead plug" to cut off the microphone.
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Update: Ars has a nifty discussion, complete with schematic. http://arstechnica.com/security/2013/12/perv-utopia-light-on-macbook-webcams-can-be-bypassed/
The good news: the LED is hard-wired to the camera's enable line.
The bad news: It's possible, on some older Macs, to reprogram the camera so it disregards the enable line.
To my mind a very short flash would draw attention especially if it was on the edges of your vision which is geared around drawing attention. How long does the camera take to power up and deliver first image?