Update : Its impossible to have flash on Moto E as it doesnt support USB OTG, the hack was tried on Moto G before Moto E was available assuming it has OTG like Moto G. This post is just for reference.
With a pricing of just Rs.6999 Moto E beats them all. Okay Moto E is out, with just one major limitation. It doesn’t have an LED flash. So here’s an idea to have flash on Moto E with just 10 Indian bucks if you have a USB OTG connector. Just solder an LED with a series resistor to USB connector. See the result on a Moto G …Same applies to Moto E.
All you need is an LED, resistor and USB OTG cable.
The same technique can be used on any Android Phone or tab without flash. Practically we use the LED intended for camera flash more as a flash light in the dark. And yes if you have the USB OTG cable and led fixed you have it. Limitation is that we are taking the power for the LED from the battery directly through the USB connector using hardware. Battery can be drained fast based on the current drawn by the LED.
More than marketing ploy and to have product segmentation, companies get rid of the LED flash. I guess its not the cost.