Are the surface-mounted wires placed in raceways or are they just stapled directly to the wall? Doesn't that expose the wires to potential damage?

Here, when people do surface mount wiring, they either put individual wires in raceways or conduit attached to the wall.

Of course you've got the idiots who tack two-conductor lamp cord (usually #16) to the walls and run it to surface mount Bakelite outlets and those old-style round switches....