Even on localhost, you should still use auth. One shouldn't naively assume someone can't break into your server.
So let’s start blaming every piece of software that listens to localhost, but is exposed by docker.
Not a fan of mongo, but the defaults are way better than before.
Docker needs to fix their defaults
And the hacker can still delete your database or steal your data. He will simply download the datafiles and then delete those data from the server. Drop database done without a database password. And no, databases aren't kept encrypted on the server.