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This is total bullshit. All they have to do is tie it to an online account - if they don't want people to abuse the feature then simply tie the online account to one piece of unique hardware. Basicallyall your content can only be on one wii or 3ds etc, and not on two wiis or 2 3ds.

They don't want people playing their friends' games at their house for free. fine, tie the online account to one piece of hardware and I can deactivate my account when I buy a new piece of hardware for whatever reason (maybe I need a 2nd wii u because the first one accidentally breaks!).

I can't believe these people, who I respect, don't see how it is an industry standard in today's age to have your shit in the cloud, not on hardware.