They were a good indicator for notifications that are missed when you were away from phone.

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Higher end Smartphones have anyway always on displays. And the led needs screenspace - which should be maximized. That’s why the notch on phones etc. was introduced.

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The led can just be put in the speaker grill though, I think my old HTC did this.

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Yes, but this has issues, too. Because dust clogs up the grills and suddenly the led is badly visible.

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