The open id give you the ability to login with one central username and password.
Site like superuser make a default user for you (basicly a u + number) once you tell them "hey i want to use my google id." They ask your permission to retrieve the fields they need from your google id.
They do not save your google password since the api works with tokens to confirm things

Lower or higher security risk?
I would say lower based on the following People use the same password over and over.
http://www.readwriteweb.com/archives/majority_use_same_password.php
This is not recommend by most security guidelines because a hacker could obtain access by hacking an external database. with all password and user information on one central place the attackers only have one place to attack and the defenders only one place to defend.
Like most things with security this advantage has its desadvantage
But there are also a number of
potential problems. Chief among them,
in my mind, is that unifying your
online identities means that having
your password compromised becomes a
whole lot like losing your wallet. Now
instead of some unscrupulous
individual gaining access one online
account, the person who has your
OpenID credentials can log in
everywhere you do. Recovering from
that means a long, slow process (for
record, I haven't heard anyone talk
about using OpenID for logging into
ultra-sensitive web sites like those
for banking or managing credit cards).
The main reason (in my opinion) to use openID is usability
Do you want to complete a registration form for the 10000000 times or just reuse the same information?