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.
Do you keep your private keys on hardware wallets, or are they stored on your hard drive? My wallet files are watch only, but with the master fingerprints so that I can use them to sign from an air gapped device.