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When your mail server exchanges email with another mail server, and the other server supports mail encryption, it tries to negotiate an encryption method that they both understand. If they find a common method, the mail is encrypted and transferred.
The way your server is configured now, if the 2 do not find a common method, it gives up and the mail is not transferred. With the statement added, you are telling the server it is ok to transfer mail without encryption if there is no shared encryption technique.
So the danger here has to do with the potential vulnerability of the unecnrypted mail you will send with some mail servers.
There is a lot of confusion now in this area because of recent discoveries of vulnerabilities in common encryption methods. Many mail systems are adjusting the encryption methods they will allow, and many vendors are scrambling to provide alternatives to methods that are now seen as vulnerable.
IBM will be releasing updates soon that will provide additional encryption techniques for Domino. Once those are installed, you will have more options. In the meantime, the fallback approach is a good response.
Feedback response number WEBB9QFJ7S created by ~Fred Deslubergynds on 11/01/2014