Yea, but it barely moves. You can see brass if the pistol has a chambered round. They made it so it doesn't really exist on the P2000, no one that doesn't know the gun would be aware that it's indicating anything.
I think it meets California Code, but it's a very poor indicator if they were really trying to. I doubt they were though. HK probably thinks it's a dumbass way to ensure the pistol is being handled safely when loaded.
I was fairly wrong with this statement. It is an adequate indicator if looking down onto the top of the gun. It exposes enough of the indicator to be clearly seen. I guess I always looked from the side and you can't really tell anything changed. From the top of the slide though, it's a legit chambered round indicator. I misspoke.