ANSWERS: 4
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The password allows the data between each computer and the router to be pretty secure. So if you send your tax documents from one computer to another over the WiFi, they're pretty secure from the prying of a computer which is not on the network (i.e. a computer that doesn't have the WiFi password). However, computers which have the WiFi password are still a potential threat. A hacker on one of those computers could spy on traffic between other computers on the network and potentially pose a threat. So if you're in a public campground where the operator is giving everyone the same password, your security depends on the trust of the other campers. The value of the password in a situation like that is mainly for the operator of the campground -- it restricts access to the network so only his customers are using it, not random strangers parked nearby.
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I would think it's not secure at all, if you are sharing it with other users. I suggest not using it for credit card purchases or any other personal information as it can be easily scanned and intercepted. +5
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As I think the first two respondents alluded to without saying directly, there is absolutely no security "to you" (as the end user) afforded by the use of a password-protected WiFi. The only "security" is of the WiFi connection itself to users that haven't been granted the password. In other words, the owner / manager of the campground assures himself with the use of a secure password (and changing it regularly) that there are no free riders on the bandwidth that he is paying for. This is truly a public WiFi for all intents and purposes, once you're inside the campground.
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It's user level not network level security. The password ensures someone from (supposedly) outside the campus is not using the network other than that security is your own, as it would be if you were to have a wifi connection in your own home. Also https can be spoofed, WEP and WPA have been cracked and WPA2 has been cracked but a tool is being developed to make it easier. Security is only as good as your vulnerabilities, so if you're security paranoide get a secure vpn or a tunneler
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