The issue I have is that in this case, your AppleID is (normally, by default) the ID you use for everything Apple related - including the iTunes Store.
I really have problems typing long 20 character passwords comprised of every kind of symbol on the iPhone keyboard. It was annoying enough trying to type my Twitter and FB passwords correctly the first time. To type that every time I want to update my applications for free, is not a nice experience for me.
This means someone could wipe my iPod remotely, but I would note that I don't have (use?) any kind of Apple controlled email, so the impact for me would be limited to my card being charged for iTunes purchases.
