Thanks for the reply. Over and above the possibility that a tech-savvy thief can break into my phone, I'm concenred about the increased level of access it can give to programs on the phone. We already ,know that enabling USB allows Tasker/DPAD to simulate human interaction with other programs... which gives pretty far-ranging access.
More examples are Gemini Apps Manager and Titanium backup.. they can freeze / block other programs from auto-starting, but only if USB debugging is enabled. When you check USB debugging in settings, Android issues a warning that it is intended for development purpose only.... it can be used to install applications on your device without notification and read log data.
I'm inclined to leave USB debuggin off as a security measure. It is perhaps a personal preference. If anyone has comments (reasons why we should not be concerned about leaving usb debugging on), I'd be interested to hear.