It seems like the problem of ON AIR light being off while scheduled play is running, is related to Airtime not being able to resolve the DNS of its various components.
Are there any limitations to using localhost for the api_client.cfg:host and airtime.conf:base_url?
In this case "production" means on a flaky internet connection in a remote location, where DNS goes away periodically. Nobody's hitting the stream, it's just going to the soundcard. It's getting annoying to restart the airtime playout engine every time DNS goes away for a day and the server gets confused and stops playing.
The main limitation of using localhost is that you are restricted to using the same machine for all Airtime services. Also, using localhost does not work well with Apache if you have access to more than one program running on the same port (which is not a problem if the machine is used exclusively for Airtime).
In this scenario of flaky DNS you have a choice of running all the services on a single machine and setting the Airtime config files to localhost, or running the services on separate machines and defining all the host names for the LAN in each /etc/hosts file so that DNS is bypassed.
A further option is to run all services on one machine, but have a clone server using database and storage replication so that it is ready to take over in case of hardware failure of the first machine. If you only have access to basic commodity servers or old PCs, this may be a more realistic option than a server with redundant features such as hardware RAID or a second PSU.