It is preferable for that to be soft and wear than an internal tranny part. I personally don't care if mine stops working all together, this is the 2nd bike in my life that I have owned with a working neutral light. If mine fails I'll probably put a bolt in there for a dollar or 2 and forget about it.

I learned all I need to know about life by killing smart people and eating their brains.
Eat right ,Exercise ,Stay fit, Die Anyway!