It's an activity indicator, it doesn't necessarily correlate to anything other than transmission or receiving is occurring. I would also not assume that they work the same between brands. Some devices may have a separate link light, others may not. Some will have a combined tx/rx light, others separate. Some vendors they're configurable. Some vendors use them to indicate things like device boot state. Etc
It's not a gimmick though, they're still useful for that purpose.
TL-SG105E
