At least in Spain, our cell phones can be disabled if we report them stolen... so far, we haven't had a massive case of blocked mobiles due to some mistake.
On the other hand, the point given about "if they don't connect, what's the use?" is a good one, password entry makes it generally safer, and some corporations would probably feel better if they had the ability to kill their stolen iLiads. I don't really mind, I have a copy of whatever's on the iLiad on my PC anyway.
