Hi
Very interesting post and something I had not thought about. I have 2 of these plugs and use it for my PS3. I only use them mainly for Video chattng to a friend in the states or streaming content onto my TV.
I have not noticed the lights flashing all the time though as I only have 2 of the plugs. It does only work if my main PC is on though as that is where the software is installed that 'manages' it.
I will have to look at the traffic and see if I the lights are always flashing