What if the wallet is than also backed up online which is known as a bad practice. What are the implications of that?
I would think that an encrypted wallet with a strong enough password should still be secure even when stored on the cloud although obviously it's not as secure as keeping it completely offline.
I agree, however "strong enough password" is a difficult thing to measure. Also, the list of transactions is not password protected for most wallets (there are exceptions).
Wifi passwords are notoriously easy to crack. I believe even WPA2 can be cracked in a few days. The underlying AES encryption standard is pretty secure but there are workarounds and vulnerabilities which can reduce the effort required to crack these passwords significantly.
WEP and Wi-Fi Protected Setup PINs are both completely broken, and have been for a number of years.
WPA1/2-TKIP (uses an RC4 cipher) has a number of weaknesses, including a practical data injection weakness and an almost-practical plaintext recovery weakness.
WPA1/2-CCMP (uses an AES-128 cipher) has no serious weaknesses, however it doesn't use a very good KDF which lends itself to offline brute-forcing attacks when weak passwords are used. This is especially true if a common SSID is also used (because it makes rainbow table based attacks possible).
(The AES cipher is believed to be very secure; there are no known practical attacks against it, although there are some concerns about the key scheduler in AES-192/256 (but not 128) possibly being vulnerable to related-key attacks one day; good news is that only poorly designed software uses related keys).