dotbit.me, a site I created for registering .bit domains, can also be used as an online wallet for namecoins and bitcoins. Transfers in and out are free.
Please note that it's still in beta. That said, it's worked flawlessly for over three months.
To answer your questions, the namecoind wallet is not encrypted and people seemingly care less than with bitcoins because the value of namecoins is low.
Regards,
Tagide