Yes, the report says Intel plans to have a way to disable or cover the camera. Will this be effective solution? That remains to be seen. Clearly, Intel put that camera in the box to monitor family members watching TV and sell off that data to advertisers and anyone else willing to pay for the data. The money Intel would making selling your personal viewing behavior is built in to their business model for this product. If one disables the camera, does the monthly cost to the user increase to make up for the lost revenue?
Everyone must realize that one can be uniquely identified by a photograph and matching one's viewing habits to a specific individual, home address, etc. is even more valuable information to sell. Does Intel really think its a good idea to sell the viewing habits or images of a ten year old child watching TV to any third party willing to pay?
Even with a disable option, it is quite frankly apalling Intel would even consider this plan seriously enough to build the capability into the box and only provide the disable feature because of consumer disgust.
If an Intel board member doesn't have the maturity to intervene on this project I am quite confident one or more members of Congress will.