I don't. I put the password in the SSID, as a form of a captcha. Any marginally intelligent human would break it, but an automated system sniffing out unprotected wifi won't.
I've always wondered if leaving your WiFi open gives you plausible deniability WRT to torrenting copyrighted material (should anyone ever come knocking).
AFAIK it's always been one of the bigger gray areas regarding pirating copyrighted material. From what I've read it's still a "we have no formal proof that people are prosecuted based on it, but we also have no proof that they aren't/can't be".
It is from 2008 though, things have changed. Just today a domain was seized by the UK govt on grounds of copyright infringement just because it was running a proxy. In Austria someone was convicted for running a Tor exit node about a month ago.
I doubt it makes a difference. Just having some server logs and an IP isn't really sufficient proof in the first place. Just because web requests come from my IP doesn't mean that I made those requests (it could be a friend, relative, hacker).
Computer forensics would be required to link the requests to a specific computer and person. Your ISP is probably still free to just ban you though.
They have, but it only concerns the USA, completely ignoring the rest of the world while still calling on everyone to open their networks. Understandable as they're an American organization, but annoying as a non-American. Almost as annoying as the NSA considering anyone with a non-American IP address a potential terrorist.