I don't think a key should be compulsory, but it needs to be the
default. If a user creates an unsecured, shared Internet connection in a
busy cafe, it can have unfortunate consequences:

* Nearby people may have clients auto-joining open networks, thus using the 
shared hotspot without even knowing it. This will create additional costs for 
the user.
* Malicious individuals can use the unsecured hotspot to do illegal activities. 
This will at worst incriminate the user.

I am sure there are more examples of why an unsecured shared wireless
network is a bad idea.

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https://bugs.launchpad.net/bugs/1431876

Title:
  [System Settings] Hotspot design unnecessarily makes key compulsory

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