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I would totally leech their connection! Of course they can see you if they look the DHCP client list in their routers CP, but chances are they don't know what that is and defiantly wouldn't be sniffing your traffic because their WLAN is unsecured. Any tech savvy dude would know how important it is to WEP up their WLAN.
If you have a Laptop then go download Net Stumbler and have a drive about town and see whos WLANs aren't secured. Just remember not to do anything naughty on someone elses network and you your be fine.
EDIT: Oh, and remember to change your host name if it's something that can get you recognised
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