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Not true. The network is displayed immediately.
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You're right. It does pop up immediately on kismet. Hmmm, I guess this is what I get for not looking first. I deserve a flame for that one. I wonder where I picked up that misconception?!?
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Since doing so makes it appear to obscure networks to those using their tool, it makes sense that they would.
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Netstumbler does pickup cloaked AP's immediately, though it doesn't indicate the name.
Also, The community at Netstumbler.org includes the same folks that put together the vast majority of pen testing tools, such as the Aircrack suite. I doubt they are motivated by a desire to obfuscate the weaknesses of the netstumbler tool with the above security suggestions.
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Except that the driveway and mailbox give you away, and the neighbor kid with time and intent might be the one to worry about.
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Your neighbors can certainly take advantage of you. The differance is, the neighbor kid can't be anonymous due to proximity/fixed location. There are some pretty sophisticated criminals that use wireless for electronic crime, e.g. child porn, credit card theft/fraud, spam, criminal hacking, etc. They garner real anonymity via the mobility that the widespread use of wireless offers them. Frightening!
Anyway, I suppose the idea of cloaking is to avoid being the sort of low lying fruit that is easy to 'pick', so to speak. Even with encryption, wireless is very easy to penetrate. I've pen tested my system through a few iterations of security features, and it litereally takes a matter of minutes to break in with modern tools and a bit of know how. At least now, the vast majority of folks can't break in, and those who can have to try real hard.
