Re: SMS messages show as "Content Protection is enabled".
If you have disabled encryption and things are working fine then what is your question?
Regarding security, keep in mind your interpretation of what is sensitive may not be everyone's. In other words, say your device gets stolen or lost and you don't have a password, now all your contact information is completely available to whoever stole / found the device. If I was in your contact list, I sure wouldn't want my information shared with a thief.
And remember, even if it's always "by your side", accidents and bad things still can happen.
Password == good!!!