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I haven't heard anything at all for actual Wii hardware failure, but anything is possible I spose. 

Disc drives could crap out, but they are easily fixed and don't require buying a new console.  I actually had a disc drive that got very noisy..but it never caused any problems for me.  I had it sent it out, and in under a weeks time had it back with a new drive and a refreshed year warranty.  No hassles, no cost and no problems since.

I should probably note that I finally snagged the unit in Jan. '07, so I've had it for a while now.

- kw