Latex fragment subscripts are misleading
In latex if you write \(test_ing\), only the i would be subscripted. If you want the whole thing, you need to wrap it in brackets. However, with org-appear, setting org-appear-inside-latex to t causes the whole "ing" to be displayed as a subscript. While I don't mind it anywhere else in org, I find this misleading or even obfuscating.
I don't think this is a problem with org-appear specifically. org-appear is not responsible for displaying of sub- and superscripts, only the unhiding of "_" and "^" and braces. How sub- and superscripts are displayed is entirely determined by org-mode. This is just how default org-mode handles sub- and superscripts, even in latex fragments. Quoting from the org-use-sub-superscripts variable:
Several characters after "_" or "^" will be considered as a single item - so grouping with {} is normally not needed.
So this is just an instance where default org-mode behaviour slightly differs from latex.
As such I don't think this is something org-appear can (or should) fix.