It seems that this bug has been fixed in 2.6.24-rc6, see
http://kernel.org/pub/linux/kernel/v2.6/testing/ChangeLog-2.6.24-rc6:
" b43: Fix rfkill radio LED
This fixes Bug #9414
Since addition of the rfkill callback, the LED associated with the off
switch on the radio has not worked for several reasons:
(1) Essential data in the rfkill structure were missing.
(2) The rfkill structure was initialized after the LED initialization.
(3) There was a minor memory leak if the radio LED structure was inited.
Once the above problems were fixed, additional difficulties were noted:
(4) The radio LED was in the wrong state at startup.
(5) The radio switch had to be manipulated twice for each state change.
(6) A circular mutex locking situation existed.
(7) If rfkill-input is built as a module, it is not automatically loaded.
This patch fixes all of the above."
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[Hardy]b43 wireless driver: WiFi LED is out when interface up and vice versa
https://bugs.launchpad.net/bugs/175829
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