"It seems when you are sick and laying in a hospital bed and have trouble sleeping, the single LED shining in your eyes is an issue,"
A LED shining in your eyes is the LEAST of your worries when trying to get to sleep in a hospital.
Actually, it IS a big deal. Sleep is important to a patient's recovery, and a lack of good sleep can slow healing.
Patients in a hospital are constantly being disturbed at night due to vital signs checks, administration of medication, pain medication wearing off, etc. Sometimes the disturbance is not even for the patient but for the other patient in the same semi-private room. Falling asleep is difficult enough; getting back to sleep can be worse. Lots of strongly glowing and flashing LEDs and other indicators can make it darn near impossible, especially if the patient is already in pain and having to lie in an uncomfortable position.
Imagine you were trying to sleep in the middle of Times Square at night, with all of the lights and noise. That's what it's like. As IT professionals we can at least cut down on the lights and beeps, even if we can't do anything about the other disturbances.