If your console breaks then you send it into Nintendo which has excellent customer service.  Their consoles hardly ever break so chance are unlikely.  The only thing you have to worry about is if it is stolen.  If that is the case then if you call them and give them all the info for your Club Nintendo account then I am pretty sure they can get you set up on your next system with your Club Nintendo account (ability to redownload all purchases).  Nintendo ID is coming to the 3DS later this year in an update.  If you create a Club Nintendo account and link your 3DS or Wii U to it then Nintendo knows about all your purchases.

Can I have my account on multiple consoles like say I had 2 WiiU's ( not that I would)? 

Not sure about that.  I assume the answer would be no.  One could then just give their account to friend and they would have access to all the games the other person bought.  I probably need to look this up but about to go out the door right now so someone else might have to fill in for me.  They have a 3DS system transfer so when people bought 3DS XL and wanted to transfer over from the reg 3DS.  The original 3DS (I assume) would become blank and then the 3DS XL gets loaded with all the stuff you downloaded from the eshop (and game saves, etc).  I haven't done a 3DS system transfer yet but I did do the Wii - Wii U transfer.  The Wii became blank while all the saves/games went to the Wii U.  So I can't play any of the downloaded games I bought on the original Wii to my knowledge.   I don't think Nintendo has any family sharing plans or supports users that own more than one of the same system.

So lets say my 3DS breaks and I can't send it to Nintendo because I live outside of the U.S. I have my digital 3DS games attached to my Club Nintendo account, that means that if I buy another 3DS and link it with my Club Nintendo account I should be able to download them again without contacting Nintendo correct? 

No you'd have to contact Nintendo to make them do the transfer. That be like if someone signed into another system and tried to download the games.

You would have to do a system transfer which requires both systems working in order to do a system transfer without contacting customer support.  So if your 3DS breaks then you still have to contact customer support to my knowledge.  I assume if it breaks or is stolen then you call and have your Club Nintendo account on the new system. 

Actually, I stand corrected...

http://neogaf.com/forum/showthread.php?t=544155

http://mynintendonews.com/2013/04/22/nintendo-reitterates-it-wont-replace-lost-or-stolen-digital-3ds-games/

http://www.nintendolife.com/news/2013/04/nintendo_of_america_rep_insists_that_lost_digital_content_not_covered_for_replacement

"All virtual content downloaded on the Nintendo 3DS is tied to the system itself. As our warranty doesn't cover lost or stolen game cards and systems, if this were to happen regardless of your games being virtual or you owning the physical copies, they would not be covered for replacement."

although then you have this...

http://www.reddit.com/r/3DS/comments/1d9e6n/if_you_ever_get_your_3ds_stolen_heres_what_to_do/

"I faxed the report and 2 full days later they reimbursed me $195 onto my club nintendo account to buy back my games and gave me download codes for all the games I downloaded via club Nintendo rewards. Nintendo was very easy to work with through the whole process, I couldn't be happier right now, I thought all of my games were lost for good. I just hope this can save someone from losing all their games!"

I rather they fix the need across Wii U in pal regions to have one unified account.

When importing from UK (which I haven't done) but know someone who ordered Ninja Gaiden 3. The game required a EU account to play. Then when his Wii U broke Nintendo AUS didn't know how to fix it because they were not aware that he had two accounts. Once they knew then they found a way around it.

To me this is a pain in the arse having multiple logins. Even on PS3 where US games need a US login. Not sure how steam works across countries as I only ever log in once and it is just there. I am sure we get different regional prices.

You don't have to live in the USA to send it to Nintendo......if you legally purchased their consoles you can send it in. There is a service number ine very console for your country lolz.

Maybe, I never had the need to contact the Nintendo office in my country. But there are many things I'm still uncertain..for example, yes I bought my 3DS here and legally, but all the games were bought using the Canada eshop...will I still be able to recover my games? Idk maybe the Nintendo here will have to send it to the U.S or Canada to fix the problem, but knowing my country that could be very very expensive...

I just emailed them about this, I honestly should have done that a long time ago (before buying digital games actually).