Wifi is probably one of the most misunderstood computer technologies today. The intent of the devices was to eliminate the need for an ethernet cable to connect to your network. Well that has progressed a lot and has caused a ton of confusion about what it is supposed to do for you.
It is supposed to eliminate the need for an ethernet cable to connect to YOUR network. You simply add a wireless router to your broadband connection and you can use your laptop without having a cable tethering you to your router. If you setup your own network by all means setup and require a password (WPA, WEP security) to keep your self safe and other people out!
There are also several "Public Hot Spots" that have cropped up that allow you to "borrow" an internet connection. These are showing up everywhere, McDonalds, Libraries, Starbucks, Borders Books, etc. These connections are open (some you have to pay to use and do require passwords etc) and allow you when traveling to use your laptop easily connected to the internet.
One very popular and incorrect assumption is that if there is an OPEN access Point you can connect to it. You can but unless you have specific permission from the owner you will be in violation the laws concerning illegal computer network usage in ALL states of the US and in the UK and Canada.
Here is a list of those laws.
http://www.ncsl.org/programs/lis/cip/hacklaw.htm
and so you know what they look like, here is the NY statute
"N.Y. Penal Law § 156.00 to 156.50
§ 156.05 Unauthorized use of a computer.
A person is guilty of unauthorized use of a computer when he or she knowingly uses, causes to be used, or accesses a computer, computer service, or computer network without authorization.
Unauthorized use of a computer is a class A misdemeanor."
If you connect to another persons network, which you have to do to use WIFI then you are stealing a service and using a computer service.. This is what gets people into trouble.
You need to also be aware there are people setting up "WIFI" in order to steal YOUR information! They simply pick a very public place and setup an open network. You come in connect to it and start reading your emails, checking your bank balance, checking your credit cards etc. Next thing you know your email is being used for spam, your bank acount is emptied, your cards are charged to the max, your ID has been stolen. How, well when you connect to a network the person running that network CAN monitor all the network traffic. This includes all the packets of data you send, if they want they can simply capture these and read them latter thus revealing your communications!
So use wifi, but use it legally and safely. Use ONLY locations you know are safe and have permission to use, use encryption (your password on your system), use a firewall on your computer as well as antivirus, and in public locations -- turn off all network shares! Use it at your school, use it at home. It works to replace the need for a network cable! When used that way its great!