I use my wallets on a Linux system with full disk encryption. Stealing the device should prevent an attacker to gain access to the filesystem. I do wallet password protection even for watch wallets, just a habit I don't want to break with. I only make an exception if I do something with a test wallet which doesn't control any worth.

Even my Testnet Bitcoin wallets are password protected, but not with my stronger passwords. For convenience I relax passwords strength where appropriate.