I have tested this a little bit more. As we all already know the "Android System" is a sum of many different things and processes that consume power, which are, for some reason (maybe a technical reason), not listed individually. I don't know exactly which modules are included, but WiFi is definitely one, and it is a big one that may consume lots of power.
If your device in unused, like overnight, then Android System power usage is mostly WiFi standby power drain. Well, maybe if there are some updates or synchronizations, then this may also include some of the CPU power required by those processes. Anyway, if WiFi is on, then all the data transfer is done using WiFi, that will increase the WiFi module power consumption. If one's phone has lots of data usage, then obviously Android System is dominating in the list.
It is, however, a percentual number we are looking at, which must be compared to other processes in the list. If one plays some really CPU+GPU intensive games, they will definitely eat majority of the battery and the percentual value of Android System becomes insignificant.
I have now had my device for 6 hours with WiFi turned off and the Android System doesn't appear in the battery list at all. With WiFi enabled, Android System would read something >30%. That supposedly is the WiFi idle current.
I have a fast AC1200 dual-band ASUS AC56U router. Next I will test if connecting only to the 2.4GHz frequency signal is more energy efficient than the full speed AC-speed.
I also tried the GSAM battery monitor app. What is wrong with it? It shows completely different statistics that the built in battery monitor. See the attached screenshots above and below taken at the same time.
EDIT 3.2.2017
As I mentioned before, I tried connecting to slower WiFi. Here is the overnigh result in battery consumption. It indeed seems that the 2.4GHz WiFi consumes much less power than the fast 5GHz/AC connection. Here can be seen that the Android System again doesn't even show up in the list. I wonder why Google Fit has eaten that much power, the phone has been standing still whole night.