You've misunderstood the original post, many android phones had an RGB LED on the device just for notifications as well as the flash. That RGB LED is now gone, so it's hardware that's been removed which makes the device cost less to produce, at least in theory.

And there it is, not only is it cheaper to produce a phone with less features, you've been given a reason to make another purchase to replace the now missing feature

(Not saying you don't need a smart watch, I have one too and it's much better than an led! Just the removal of a feature to make something else paid seem more attractive is a common one now)