Patents are good for you ...
... the point of a patent is to reward someone who spends time, effort or has a leap of inventive genius and comes up with an idea, and to stop other people just going "oh that's clever, I'll steal it and make money off it".
Of course people would still invent things if there were no patents, and lots of people do and put things into the public domain every day. Other people have toiled away in a lab or a shed for years to get something working, have produced hundreds of prototypes that failed, and when finally they get one that works, it is fair for society to grant them some protection, if they request it, to stop somoene else coming in and skipping the research or genius part and just profiting from it.
But, and this is another key point, in a Patent you must publish your idea for everyone else to see, and they are then free to come up with a different method of achieving the same result. And at the end of the patent period, everyone now has the full description of how to achieve that result.
In many cases patents are granted unless challenged early on, but can then be dismissed later if someone can find that it was already known/on the market (prior art), so just because someone patents "a method of swinging on a swing", doesn't mean it's going to remain a valid patent, or that you can't come up with your own method of swinging.
And to all the idiots saying "why don't they just go patent the wheel/fire/electricity", because they all already exist and any patent would thus fail the prior art test, morons.
This LED development certainly appears to be a "new" invention (at the time of the patent), non-obvious, no prior art, and properly drawn up.
I am not a lawyer (but I have been on my company's Intellectual Property course and have read a chunk of the published lawbooks) and so this next bit is speculation ...
... I believe there isn't a requirement to jump in immediately and say "hey, you're infringing my patent" but that the law courts would look dimly on a case where it appeared that the patent holder had waited for millions of, say, Bluray players to be built and only then jumped up and said "hey!". I would hope in that case the judge would find that the players did infringe the patent but assert that the licensing fee and fine payable would be negligible, so as to both confirm the force of patent law but to stop frivilous and sand-bagging cases.