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Yes, you can use Default Embedded LDAP provided out of box with default weblogic domain. Yes, it is not recommended, but it should work fine. Now how complex and how much security data do you really have in this old LDAP that came with Weblogic. If all that worked fine in older 8.x SPxx, then it should work fine on WLS 10.x also. Most of the times all it has is the Users and the Groups and some basic meta data like some properties for each user etc.
Worst case, instead of complex IM product, you can always use any other open source LDAP Production like Sun One AD or Open LDAP (with some license terms) and configure that with Weblogic and this is Totally supported in Production also.
For not a huge security data, go with default LDAP that comes with Weblogic.
It depends on the security requirement of your application.
If your application has secured resources and the number of users to access them are huge.. then you should configure a third party ldap server, or use SQLAuthenticator ( if you want to keep users in DB)
Weblogic Embedded ldap has default users for administration, deployment, monitoring.. purposes..