Well, got my Saga on Friday to test and yes, the LED flashes a purple alert for missed calls, new texts, etc. -- whatever I've got it set for in Sounds & Notifications. The trouble is, once the phone powers down, that LED goes away. In my case, that's about 2 minutes.
I'm moving from an Apache running WM6.1 and that phone's LED continued to blink amber (as opposed to green) for alerts, even after it powered down.
I must say, I'd expected the Saga to be a little snappier over the 6700, and I'm not finding that to be the case. On the other hand, I was running a very lean-and-mean ROM on the 6700.
I'm quite hard of hearing and rely on visual alerts, so if I can't around this LED-off-when-power-save-on issue, I think the Saga will have to go back. I really like the form factor, though.
