Because the user can choose if he wants to do it. The GL interface has some protection, luci is 3rd party and OpenWrt don't want to create more protection here.
Exposing a device to WAN is always dangerous. I agree there should be a warning.
But when you allow glddns it automatically expose all ports open to wan?
If that is the case that is no good at all, ddns should only give a A record to your routers public ip, but not also forward ports you are supposed to do that yourself.
This is a very handy feature, if you are using the router behind another router and want to access it from your transfer network, without manually change FW rules and place bigger holes as needed.
Just you don't need it does not imply it is useless. I use this switches regularly in Lab environment or when I provide guest networks over a second router behind my main router at a remote site (Yes, I am traveling with more than one router).
We are talking about WAN, which does not automatically means Internet.
I really would hate, if I can't remember the given password directly (changes every setup, because security) and the system blocks me out.
WAN interfaces can still be used internally. I use a router like that where I manage it via WAN (https and ssh), but it is connected to my internal network. There are valid uses, but as stated, exposing it to the internet is a pretty bad idea.
Then I think we should just came with warning and additional toggle that will block more than 3 attempts to login in LuCi. Who needs it will enable this.