Off the top of my head:
If someone found your directory, they could upload a script, yes, but what they are then capable of accessing is not limited to that particular directory. The script could easily sniff around, accessing other parts of your site, reading php files unparsed (getting database connection passwords, etc.), and even though it may not be able to write to other directories, it would know the full contents of what is stored there.
IMO, it's not a good idea to CHMOD 777 anything, but if it is necessary, make it very, very hidden (like don't put the script that accesses the 777 folder into the directory itself)!
HTH