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Georgia Institute of Technology Researchers Bridge the Airgap
An anonymous reader writes Hacked has a piece about Georgia Institute of Technology researchers keylogging from a distance using the electromagnetic radiation of CPUs. They can reportedly do this from up to 6 meters away. In this video, using two Ubuntu laptops, they demonstrate that keystrokes are easily interpreted with the software they have developed. In their white paper they talk about the need for more research in this area so that hardware and software manufacturers will be able to develop more secure devices. For now, Faraday cages don't seem as crazy as they used to, or do they?
Missing from the summary: THEY HAVE SOFTWARE INSTALLED ON THE VICTIM LAPTOP that modules the CPU usage.
You don't need any fancy equipment, any AM radio will do.
The trick is that security measures have costs, in time, money, user convenience, etc. and it is considered 'crazy'(in the weak sense of 'not sensible', not the psych-ward sense) to voluntarily impose costs on yourself that are out of proportion to the costs of the expected threat.
There's always something you could be doing more securely; but only sometimes is it worth it.