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Close as in a few feet away, so it'd be fine sitting on a desk with the light above, an anglepoise maybe, or even ceiling light(s).
Yes moving around could be problematic, you'd have to try and engineer it so the LED was damn bright and the receiver damn sensitive, and LED on the computer also damn bright (probably infrared so it could be damn bright without being a bloody great light shining out of your computer).
It would help relieve the burden on the overcrowded WiFi frequencies.
As a practical technology it would certainly have limitations but as a concept, IWITOT :)
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