Random Linux trivia/story: Back in 2002, I was trying to measure the impact of various long-held spinlocks in the kernel. By random chance, I noticed there was a huge latency spike when I enabled caps-lock. It turns out that it takes about 7 milliseconds to turn a PS/2 keyboard's caps lock LED on (or any of the other LEDs), and the kernel stops what it's doing and waits for it to complete regardless of whatever else…
For some reason this discussion reminds me of the way the ZX spectrum handled tape input by using a single bit of a register that was shared with the three bits of screen border colour. Because the default tape loader accumulated bits there by shifting the register along at timed intervals, the data loaded produced patterns in the screen border.
It didn't have any keyboard LEDs, but the Spectrum did have at least five different input "shift" states - the keyboard was modal and auto-tokenizing.