I have 4 copies in different locations but thats only for my cold storage wallet.
That is risky, because if one is in the wrong hand, others become useless. I'd prefer to have only one that is well secured.
No. You can have multiple layers of security.
For example:
1. Set a good walletpassword. A long string, 35+char with special signs.
2. PGP encrypt the wallet itself.
3. Use stenography to put it inside a picture.
What somebody peaking at your usb-stick would see would just be vacation001.jpeg etc, and no wallet.dat. They wouldn't even know it's there, and if they knew, they sure as hell would be unable to extract anything from it.
You can also rent a few VPS'es, and save the wallets there (password protected wallets that are also pgp encrypted), and name it like something innocent, like wifi-driver.bin or something.
So, even if your house burned down, you'd be safe.
