Is lead in paint really as bad as they say it is?

Isn’t lead only poisonous if you consume it? So, if you don’t swallow the paint or eat paint chips, isn’t it not dangerous? I mean they used to add lead in everything, even pencils. They say that small children may eat it, but don’t you need to consume a considerable amount over a period of time before you start suffering from lead poisoning? Finally, is it true that lead paint doesn’t catch fire as easily as normal paint?