Fingernails effect the tone more than anything else for most people, but I myself find fingerpicking way easier with nails. Just a personal preference. If you don't want to use nails or fingerpicks there's nothing wrong with it as long as it sounds good to you. I have clipped nails on my left hand and right thumb and the other four digits on my right hand are uncut.

It's pretty practical for other things outside playing the guitar as well, although I never thought it would be. It doesn't feel wierd or anything, or at least it doesn't after getting used to it. Nobody has even noticed, although if I had a gf they probably would.