Stupid decision. My iPhone 3GS was stolen and had the password turned off as my mum was using it and it felt good knowing no one could download stuff on to my iPhone.
Thats a totally different password.
Password to unlock your phone, and password to download a free app.
Man some people actually make me laugh out loud because they are so stunned.
@Awayze - If your iphone is stolen then why would you care if they download free apps? Its not like they are going to return your phone and your are not going to be charged anything.