Then what about the laws in Australia that protect modchips? It isn't illegal to have a modchip installed in any console in Australia, it just voids the warranty from the company you got the console from.
Not everybody uses the modchip for downloading games. A lot of people like to purchase the games from overseas, as apposed to waiting and waiting and waiting (Super Paper Mario, classic example, still no hard, concrete release date) for the damn game to be released. Ultimately the company is screwing itself by not releasing games sooner in some regions, especially Australia!
The update message warning only seems to come up when you go to try to update again.
I just went there to check, then held down my power button to turn it off. I think the next update will be the ultimate tester of the chipped Wii's.
07/08/2007
Mario and Sonic at the Olympic Games
Gold Coast, Queensland, Australia