Is this worth turning into a package?

Thanks for this, @James_Richmond!

I think it's probably best to leave this as a tutorial on your personal website since you wouldn't be able to store the Apple Shortcuts with your package on the Store.

This is a great little workflow, though, and I'm glad you found that SoundFlow helped you accomplish it!

If it's okay with you, I can move this to the Script Sharing section of the forum for now.

Note that your script currently uses a while(true) loop, which will block other SoundFlow actions while it's running. You can use a "runforever" script instead, which can run in the background, allowing SoundFlow to run other scripts.
Example: Select Track as trigger #post-7

Here's the updated script - untested but should hopefully work:

if (sf.ui.useSfx && !globalState.OPP_disableSfx) sf.ui.useSfx();

function main() {
    try {
        if (!sf.ui.proTools.isRunning) {
            if (globalState.wasRecording) {
                sf.system.execShortcut({
                    shortcutName: 'Recording Light Off'
                });
                globalState.wasRecording = false;
            }
        } else {
            const recordButton = sf.ui.proTools.mainWindow.transportViewCluster.transportButtons.buttons.whoseTitle.is('Record Enable').first;
            const buttonValue = recordButton.value.invalidate().value || "";
            const isRecording = buttonValue.includes("Is Recording");

            if (isRecording && !globalState.wasRecording) {
                sf.system.execShortcut({
                    shortcutName: "Recording Light On"
                });
            }

            if (!isRecording && globalState.wasRecording) {
                sf.system.execShortcut({
                    shortcutName: "Recording Light Off"
                });
            }

            globalState.wasRecording = isRecording;
        }
    } catch (err) {
        // optional: log("Watcher error: " + err);
    }
}

function runForever(name, action, interval, timeout) {
    var now = (new Date).valueOf();
    if (now - globalState[name] < timeout) throw 0; // Exit if we were invoked again inside the timeout

    globalState[name] = now;
    sf.engine.runInBackground(function () {
        try {
            while (true) {
                sf.engine.checkForCancellation();
                globalState[name] = (new Date).valueOf();

                action();

                sf.wait({ intervalMs: interval, executionMode: 'Background' });
            }
        } finally {
            globalState[name] = null;
        }
    });
}

runForever("isRecordingLightRunning", main, 250, 5000);

Thank you for your alteration to the script, and for moving it to the right place.

I've updated my article with the changes.