I think it's sort of an illusion (though certainly a useful one) that numbers are all part of the same system. Multiplication of natural numbers is defined to be repeated addition, and I'm not really sure how you could define natural number multiplication in any other way. From the natural numbers you can go on to define the integers, rationals, then reals, and each has its own definition of multiplication, though they each depend on the definition of multiplication from the previous system.
There's a standard way of lifting each type of number to the next type, and this lift is compatible with all the basic operations (the lift is a "homomorphism"), so it's easy to pretend that the real numbers (or complex numbers if you want) are the universal system.
So with your example of going to fractional values, you're right, repeated addition falls apart -- but I'd say that's because it's not the definition for multiplication of rational numbers! Multiplying numerators and denominators is the usual definition, but that gives about as much intuition as does the definition for multiplying natural numbers. Sort of "the point" of multiplication of naturals, I think, is that it represents how many things you have if you arrange them in an n by m grid. Rational numbers show up in geometry with similar shapes (scaling), and for a few reasons you'd want multiplication to represent by how much something scales after a composition of scalings; maybe "the point" of rational number multiplication (at least algebraically) is that you can defer dividing until later, i.e. (a/b) * (c/d) is (a*c)/b / d.
There's a standard way of lifting each type of number to the next type, and this lift is compatible with all the basic operations (the lift is a "homomorphism"), so it's easy to pretend that the real numbers (or complex numbers if you want) are the universal system.
So with your example of going to fractional values, you're right, repeated addition falls apart -- but I'd say that's because it's not the definition for multiplication of rational numbers! Multiplying numerators and denominators is the usual definition, but that gives about as much intuition as does the definition for multiplying natural numbers. Sort of "the point" of multiplication of naturals, I think, is that it represents how many things you have if you arrange them in an n by m grid. Rational numbers show up in geometry with similar shapes (scaling), and for a few reasons you'd want multiplication to represent by how much something scales after a composition of scalings; maybe "the point" of rational number multiplication (at least algebraically) is that you can defer dividing until later, i.e. (a/b) * (c/d) is (a*c)/b / d.