You've got a vulnerability when there's a path for privilege escalation, that is when someone (let's call him the attacker) is able to do something he isthey are not meant to.
Most people will bump into bugs associated with unquoted variables because of the split part (for instance, it's common for files to have spaces in their names nowadays and space is in the default value of IFS$IFS). Many people will overlook the glob part. The glob part is at least as dangerous as the split part.
Arbitrary code execution is the worst type of vulnerability, since if the attacker can run any command, there's no limit on what hethey may do.
And with a $1 with value (IFS=-1234567890), that arithmetic evaluation has the side effect of settings IFS$IFS and the next [ command fails which means the check for too many args is bypassed.