Wi-Fi Sense seems intrusive

Microsoft’s Wi-Fi Sense appears a bit scary for anyone running a wi-fi network. Once a user has joined your network and not opted out of sharing it, the network and its access details are sent to Microsoft for use by everyone in that user’s contact list:

For networks you choose to share access [to all your Outlook, Skype or Facebook contact list] to, the password is sent over an encrypted connection and stored in an encrypted file on a Microsoft server, and then sent over a secure connection to your contacts’ phone if they use Wi-Fi Sense and they’re in range of the Wi-Fi network you shared. Your contacts don’t get to see your password, and you don’t get to see theirs.

To opt-out of this, you either:

• Add _optout to your SSID (link);
• Type in your network password onto your friend’s phone or PC, then clear the Share network with my contacts check box before you tap Done to connect.

Am I over-reacting, or is this feature pretty odd? Even for users, it seems connecting to potentially hostile wi-fi networks automatically is a dangerous thing.