It STILL doesn't encrypt the wallet file. That is the most important thing!
No it is not.
Please explain. Do you believe that wallet encryption is important but is not currently the most important thing to Bitcoin's continued development or do you mean that wallet encryption in general should never happen.
It should easily be possible to split the wallet file into two different sections, one containing the public keys + addresses and the other encrypted section containing private keys. This can be separately encrypted with AES256 (or similar) within the same file and provide the necessary protection against someone stealing your computer and immediately gaining access to all the Bitcoins stored on it. You could then have peace of mind once a backup is restored that your coins are secure.
If I am wrong, explain your reasoning clearly.
This would mean that you would have to enter your password when sending coins, if you had your wallet stolen, that person would (probably) have physical (virtual if you got hacked) access to your computer, and have a chance to keylog your pass. All I think it does is add a false sense of security. You should encrypt it manually in a TC container or something.