The nstpasswd command makes it very easy to administer the Network Security Toolkit. It sets many of the system login/password combinations to a single value (i.e. creates a Single SignOn environment). This means you only need to remember one login/password to administer a Network Security Toolkit system.
However, having the same login/password combination for many different applications means that someone who is able to gain read access to your system might have a easier time determining the password for the super user: root. Single SignOn environments, where the same password for multiple applications (ssh, httpd, vnc, etc) is used, may make it easier for someone to break into your system and compromise your network.
This problem is not unique to the Network Security Toolkit. Anyone who uses the same password for different systems (or services on a single system) will have this issue.
Care should be taken if you install the NST to a hard disk partition on a system which is not physically secure (meaning that people you don't know will have physical access to the system and the ability to read the contents of the hard disk).