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Spectrum assignments and operational limitations are not consistent worldwide; most of Europe allows for an additional 2 channels beyond those permitted in the US; Japan has one more on top of that - and some countries, like Spain, prohibit use of the lower-numbered channels. Furthermore some countries, such as Italy, used to require a 'general authorization' for any Wi-Fi used outside an operator's own premises, or require something akin to an operator registration.
Power consumption is fairly high compared to some other standards, making battery life and heat a concern.
The most common wireless encryption standard, Wired Equivalent Privacy or WEP, has been shown to be breakable even when correctly configured.
Wi-Fi Access Points typically default to an open mode. Novice users benefit from a zero configuration device that works out of the box but might not intend to provide open wireless access to their LAN. WPA Wi-Fi Protected Access which began shipping in 2003 aims to solve these problems and is now generally available, but adoption rates remain low.
Wi-Fi networks have limited range. A typical Wi-Fi home router using 802.11b or 802.11g with a stock antenna might have a range of 45 m (150 ft) indoors and 90 m (300 ft) outdoors. ange also varies with frequency band, as Wi-Fi is no exception to the physics of radio wave propagation. Wi-Fi in the 2.4 GHz frequency block has better range than Wi-Fi in the 5 GHz frequency block, and less range than the oldest Wi-Fi (and pre-Wi-Fi) 900 MHz block. Outdoor range with improved antennas can be several kilometres or more with line-of-sight.
Wi-Fi pollution, meaning interference of a closed or encrypted access point with other open access points in the area, especially on the same or neighboring channel, can prevent access and interfere with the use of other open access points by others caused by overlapping channels in the 802.11g/b spectrum as well as with decreased signal-to-noise ratio (SNR) between access points. This is a widespread problem in high-density areas such as large apartment complexes or office buildings with many Wi-Fi access points.
Wi-Fi networks can be monitored and used to read and copy data (including personal information) transmitted over the network when no encryption such as VPN is used.
Interoperability issues between brands or deviations from the standard can disrupt connections or lower throughput speeds on other user's devices within range. Wi-Fi Alliance programs test devices for interoperability and designate devices which pass testing as Wi-Fi CERTIFIED.
Src Wikipedia