I've got two 3750X switches that were built from a fairly basic template from my existing 3750/3560 switches. However, these new switches ONLY prompt for the device/enable passwords instead of the configured local username/password when connecting by console/telnet/ssh. Here's the config that I think is relevant, sans password strings. Only real difference is that the new switches are running an IOS 15.2 build, the 3750 switches are running 12.4, and the 3560 is currently running 15.0 (pending an update).
enable secret 5 string ! username Administrator privilege 15 secret 5 string line con 0 password 7 string login local line vty 0 4 password 7 string login local length 0 line vty 5 15 password 7 string login length 0