Transaction limits are absolutely an important factor in limiting these kind of risks.
In Netherland, there's also one electronic payment system that does not require a PIN: the "chip knip" (chip wallet). You explicitly transfer an amount of money from your account to the chip (often about $20), and you can use that to pay. You still need to approve the payment by pressing a button on the machine, but if you lose it, you don't lose a lot.
And it probably works without a phone/internet connection, because the money is right there on the card and nothing needs to be verified on any server.
And it is about convenience - people are willing to accept the risk for the added convenience.