@epeleg The PSK does indeed still offer a layer of security. But, in the case of a freely-accessible, publicly-available PSK the protection is no more than that offered by WEP, MAC Address Filtering, or SSID Hiding these days.
@epeleg Like I said, the network's signal will only stretch out for about a block before it becomes unusable to most systems. So, in the end, the only people that should be using the network will be your neighbors and their visitors - people you should know or people who can be validated by those you know.