I'm under the impression that a router secured with WPA does not allow one computer to see another computers data. Could be wrong on that though.
Depends what you mean by "see" ... are you saying wireless clients talking directly to each other without going through the WAP? Otherwise (or even if that was the case), standard system level access controls would (or should) be in control of what data can be seen on a computer.
Well the least that could be done would be to monitor you internet usage and intercept insecure data going across the wire. Also it would be possible to edit host records and direct it elsewhere but this this isn't likely.
Huh? Edit host records where & how exactly?
On a related note, I have discovered my cable modem has ssh and telnet open and I tried to login a couple times and got locked out with brute force protection. Since then, the cable provider is filtering ssh and telnet but I'm hopeful another reset of the modem will fix this.
This kind of thing always makes me laugh. The stupidity of residential ISP's has a long, sordid, and ongoing history of doing dumb sh!t. Just yesterday I was flipping between a primary cable modem connection & backup DSL connection - all the while pinging the router for the cable connection @ 10.10.10.1 to make sure I was still online. Well, after I switched over to the LAN for the DSL connection - I noticed 10.10.10.1 was still responding - only at an increased rate of ~60ms. Stupid AT&T is routing it right out onto the public internet and something on their network is even responding to the ICMP requests

The mention of telnet though reminds me of the old days in the 90s when a bunch of us got our first residential DSL lines through Digital Select. We get the thing setup and start probing around RFC1918 (private, not-supposed-to-be-routed-on-the-internet) space space for some reason. Next thing we know, we find we're able to login to many of Digital Select's backbone ATM nodes ... VIA TELNET! No access control whatsoever, we were just dropped right into a full access prompt. Saw a bunch of their WAN links and could probably have caused them a huge outage if we were so inclined.