Been a long time since I rock and roll'd.
Where are we now? modchips exist similiar to the xbox360 chips that filter DVD drive commands to report a burnt disk as a real disk. So the pirates are happy. http://www.openwii.org
Some people have been dumping the NAND filesystem. A couple of them have been dumped. http://openwii.org/forums/viewtopic.php?t=203 seems to be the most accessible place to find some images and some analysis.
The NAND isn't what we need though. It's just filesystem storage. We need the lower-level BIOS.
The other option is to break out of GC compatability mode. Is there any example code that does that? I don't think so.
Time to learn some FPGA :D