KeyChain and Password Security

Could someone please explain to me the answer to this conundrum? If I secure a file with a password, I am asked whether I want to add it to my KeyChain. If I do so, the file can be opened in the ordinary way by double-clicking on it. So what is the point of the password?
A related question is that I am also asked (and even recommended) to provide a password hint. What is the purpose of that?
Thank you, Mac experts, in anticipation of an elucidation of these mysteries.

You are right. I should be the only who has access to the passwords. But I am not. I am the only person in my house who uses my computer, so I do not log out when I shut it down. The consequence is that if a burglar were to break in, or a dinner-guest were to bring along a friend with criminal tendencies, that person would only have to start my computer up and s/he would have access to my keychain.
Even if I were always to log out when shutting down, logging back in only requires a single password, which may or may not be easily guessed.
It is quite clear that, as dwbrecovery said earlier in this string, I should not add the passwords of password-protected confidential documents to my keychain, and I have removed the one for the document I was concerned about from my keychain.

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