To expand on the above
In manual (for Canon) the shutter and aperture are still locked at their settings the same as with Nikon. Its only the Iso that will scale when you set auto-Iso.
As I mentioned before this can cause the image to be overexposed if you are not careful, because the Iso can increase past 100 (to prevent underexposure) but cant decrease below 100 (to prevent overexposure).
It takes some skill to do this correctly, and you still may need to tweak the shutter and/or aperture to prevent overexposure in certain situations (especially daylight outdoors).
I find it very useful though, and I think auto-Iso should be standard on all bodies from this point on. There is really no downside to it as far as I can tell.
It can provide an additional layer of protection against underexposure which is the most common type of exposure problem that we usually face as photographers.
You need to be careful with it though, because the camera does not know anything but what Iso needs to be set based on the lighting conditions and your shutter+aperture.
For example (with the 7D at least) if you were to set the aperture to f/8 and the shutter to 1/250th with auto-Iso enabled, the camera will probably set the Iso really high (like 3200). This would be especially true if you were shooting in less than descent daylight.
Clearly for the 7D at least 3200 isnt ideal. Also when you hit 3200 it will max out and likely be underexposed. You just need to have some knowledge of the exposure triangle and pay attention and then everything will be fine.
This took me some time to learn because I was new to the feature.
So although its a very powerful and useful feature, care needs to be taken to ensure that you are not only getting the aperture and shutter that you want but also the Iso (for clean images).