You make very relevant points. However, the issue isn't so much whether an "open" wifi connection is legal or not - its basically about whether people actually realize the potential implications of having an "open" wifi connection.
Three issues of having an "open" wifi connection:
1. bandwidth hog 2. someone using your internet connection to visit malicious websites as well as visit/download child pornography and 3. the ability to weeve a way to your hard disk and drop some virus that collects username and password information
Anyone who has an "open" wifi connection should consider this "you'd never leave your front door open for anyone to walk in! would you?" I rest my case.