From the piece: "With that said, when Nest Cam is turned off, it completely stops transmitting video to the cloud, meaning it no longer observes its surroundings." .
So whether its camera is all the way off or in warm standby isn't very relevant to privacy if no information is being sent out. For instance if I wanted a unit to act only as a movement tracker this would be a good thing to have a camera for but no sending information out. Now the question is why does it need to send video from in my home to the cloud at all? Why can't I just store video locally if I am interested in that or see out of its camera live? I am not sure I understand the use cases of this device.