Massive exaggeration? No. When you're literally the only account system that's designed in this ass-backwards way, then it's giant fucking problem. It acts exactly counter-intuitively to how any rational customer would expect it given their use of accounts with Apple, Google, Amazon, Microsoft, Sony, etc.
Microsoft got this right in 2005. By the time Nintendo likely addresses this, it will have been an entire decade since people first got it right in gaming.
And before the "well people don't use that feature much" argument gets trotted out, as it inevitably does, I've had to use that feature for both the 360 as well as the Vita, since I either changed consoles via upgrading or got a second one, and both times, I had to call customer service and hope I got someone willing to help me exactly 0 times to do it.