I'm working on a Raspberry Pi camera doorbell that records to local storage and sends no footage to a cloud service. My instinct is still to give it a physical status light, or a tiny e-ink display, that clearly says when recording or a notification is active. That is social accountability: people at the door shouldn't have to take my word for what the box is doing.
It isn't a complete privacy guarantee. Remote viewing is a separate path, and notifications can still touch outside services unless configured for local delivery. I also don't fully trust my own firmware to report state perfectly. An always-visible light could disclose household routines, annoy everyone at night, or create reflections in low-light scenes; a display may be excessive. Would you choose an always-visible recording signal, a user-controlled one, or no indicator at all?