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Its 100% harmless. All people can do is send messges. Its not even a security flaw. Just type "net send IP_ADDY message" in a command prompt.
Secondly, one way is just to disable the service. Although some people might have legitimate uses for it. The other is to disable netbios over TCP in the network properties. The later will provide protection against people browsing your HDD if permissions are set incorrectly.
Thirdly, I agree microsoft was insane setting up windows defaults so that people can send in a sense faked system messages. HUGE social engineering portential here.
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