As you may already know there are now 3 modchips out for the Wii. First it was Wiinja, then CycloWiz, and now WiiKey. Something caught my eye while I was looking over the specs for WiiKey this morning on Wii News...
# Fully upgradeable via DVD/disc (future proof, expect cool features to come)
Does this mean they've figured out a way to execute arbitrary code on the Wii or does it simply put the DVD drive into a special mode that passes the data on the DVD into the modchip?
UPDATE: The Update disc will likely be formatted for Gamecube and will launch in GC mode. The app will send commands to the chip to flash it with the updated code. Since the chip 'listens' and reacts to these commands, it also means Nintendo can possibly detect if you have a chip like this (WiiKey) installed in your console.
So to recap...Wii Homebrew is still not possible. Gamecube homebrew on the Wii IS possible via a modchip or through Action Replay/Freeloader. None of these chips get us any closer to Wii Linux