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Never knew that countenance could be used like that. TIL
It is pretty cool indeed, however keep in mind that's just standard component in circuits to turn signals on and off. It is just a PNP or NPN transistor. Everyone makes use of it.
To be clear too, I'm just speculating about that part. The only thing this document says is that "This disconnect is implemented in hardware alone, and therefore prevents any software, even with root or kernel privileges in macOS, and even the software on the T2 chip, from engaging the microphone when the lid is closed." That implies to me that they are using some form of physical interlock (probably a magnet and Hall-effect sensor), and that they use this to completely disable the microphone. The most obvious way to me to do that in this case would be to cut the power with a transistor, but in principle there are a number of other ways it could be achieved.
I think it makes sense to assume they have a hall-effect sensor and a MOSFET but of course maybe they combined both in a single package.

Thinking how a hall-effect sensor works, perhaps it would be possible to embed it in a wafer with some gates and you're done.

I had been using iCloud for backup up until a DJ gig where I came to realize that upon enabling iCloud it had automatically moved all my AIFF music files to the cloud, leaving only a symlink behind. So that gig was a failure and pretty unprofessional. I disabled iCloud and a few days later kaboom, the Macbook died! I lost everything. My mistake for assuming the SSD could be removed and plugged in via an USB caddy.

Apple replaced everything except the bottom case. I picked up the laptop with 100% charge, tested it was working. I jumped on a flight home (no apple store in my country) and that night kaboom, Macbook died again! What are the odds? I hadn't plugged it in to anything. The eventually agreed to give me a brand new one.

The positive side of this experience was forcing me to use an iMac and only work from home office during specific hourse and to not be attached at the hip to my laptop. Net positive for my wife and I.

It is for security reasons, disconnected by hardware when the lid is closed so that not even the T2 has access to it(or any hacker trying to listen in on you). Facetime camera works however, as closed lid essentially prevents it from seeing anything anyways.