Source: http://kotaku.com/5961662/dont-losebreak-your-wii-u-because-your-nintendo-network-account-is-tied-to-it

That really sucks. What happens if the system bricks and you need to buy another one? You're essentially screwed.

...is that for real? If so holy crap that is a BAD idea. My original PS3 died, I bought a new one, and *boop* I was able to recover my account and all my trophy information.

That also kills people wanting to have multiple WiiUs for different rooms in the house (rarer, but I know people do that)

This also means you can't go to a friends house and sign in on your account.

Do any other systems do this?

Not screwed.   Contact Nintendo. 

You're only screwed if you do nothing.

Hope my WiiU doesn't red ring or else im in trouble

My PS3 doesn't. Friend and I have each others PSN accounts on both of our PS3s. We don't know each others passwords, but we use them when we go over or want to share something on PSN.

Yeah, also the second part of the first reply is saying it's a work in progress. 

Uhm, that seems like a pretty bad idea.
I'm sure they'll fix it later on, if they want to beat Sony and MS on online experiences and functionality they'll have to do better than this.

This makes no sense. When you start making a new id for a user, the first question is if you need a new id or use existing. This can't be true.

Hopefully your right, but it does hint in op Nintendo Network will be able to be used on other services. They thought ahead. Xxample. Guy doesn't own Wii U but has a Nintendo ID through another way( PC from Nintendo site) When he gets Wii U it may asking do you want to use your previous Nintendo account made elsewhere that will be locked on this console or New ID... which will be locked on this console

Ridiculous Nintendo, ridiculous.