I just checked my selinux/config file. I don't remember setting it this way, but it's set to:
SELINUX=permissive
SELINUXTYPE=targeted
The comments say that this makes it only protect targeted daemons, and that it just prints warnings instead of actually protecting, so I guess it's almost like having it disabled.
I looked through the audit logs and didn't find anything, bad, so I'm going to try to turn it on and see what happens.