If you are only doing the occasional install then this really shouldn't be a great hardship. If you are installing many servers you should have this part automated. And ti shouldn't be meaningless either. I think you are doing it wrong.
> Once upon a time, I could use the well known admin login 'root'.
You still can. root login can always be reenabled if you want it that badly. There is also "sudo su" (unless explicitly disabled by your admins) to avoid repeated invocations of sudo while you are performing a long admin task.
> - Here's a better way of doing it:
> Give me a server distro where I don't need a 'login'.
No, no, and thrice no. Far too many newbies will leave it in that state and get hacked to buggery in short order. Even if it is only for local console logins, I'd consider it a bad idea.
No matter how inconvenient it is, server install should default to an insecure state and allowing access without authentication is such a state.
Live CDs often do this, but they are not production systems.
> Meanwhile, why is apache pretending to be a 'user'
Well that much is a valid point. There has been work in this area but non of it has made its way to default setups of most unix-a-like systems.