Re moneybelts. The correct way to use one is not to dig into it every time you'd normally use a wallet, thus making yourself a target. You should put a reasonable amount of spending money in your wallet, and use the moneybelt for extra cash--such as when you've just made a big withdrawal at an ATM--as well as your spare ATM card, spare credit card, passport if you're carrying it, etc. When you need to move money or anything else from the moneybelt to your wallet, you should do it somewhere like in a restroom or a dressing room in a shop or, if that's not possible, when inconspicuously hidden in a corner somewhere.
I often do use one when I travel. True, I don't use one at home, and it's also true that the locals probably aren't using one. But dealing with the consequences of being pickpocketed are not nearly as inconvenient or annoying when you're at home as when you're on the road.
When I did have have my wallet taken in Palermo, with minor injuries to myself, I was very glad that after leaving the ER I still had my passport, a credit card, and travellers checks (this was years ago), so that I didn't have to go through the rigamarole of replacing them and I wasn't left with no resources. I guess the alternative is to keep everything in a hotel safe, but that's not always available--for example, when you're travelling between destinations--and it's not always convenient if you want ready access to those things.
I really don't care if anybody else uses a moneybelt or not, but it works for me, even if other people think I'm an idiot.