Are default parameters bad practice in OOP?

I would take this as the "official" answer from Microsoft. However, default (and named) parameters will most definitely be available in C# 4.0.

No, it doesn't affect encapsulation in any way. It simply is not often necessary. Often, creating an overload which takes fewer arguments is a more flexible and cleaner solution, so C#'s designer simply did not see a reason to add the complexity of default parameters to the language.

Adding "Another way to do the same thing" is always a tradeoff. In some cases it may be convenient. But the more syntax you make legal, the more complex the language becomes to learn, and the more you may wall yourself in, preventing future extension. (Perhaps they'd one day come up with another extension to the language, which uses a similar syntax. Then that'd be impossible to add, because it'd conflict with the feature they added earlier)