It's similar to having a PSN account. All your purchases are saved in your NNID so that you can re-download them at anytime. And other stuff that I can't remember.
Well, the "ban" part is mostly if you're using a rom that has a public header that every person uses. It doesn't matter if you have an NNID or not.
For now it seems so, I think that no one that used the same private header in many games has been banned, but I am not reading new reports often.
Of course, this may change in the future... or not...
Purchases are tied to NNID, so you can redownload and format your system safely, without losing purchased titles. It's also your "gamer tag" for some games.
Purchases are tied to NNID, so you can redownload and format your system safely, without losing purchased titles. It's also your "gamer tag" for some games.
Nope. While the games may be tied to the NNID, the NNID is tied to that system and that system only until you use system transfer. This is obviously to prevent downloading multiple copies of the same eShop games.