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I remember reading a quote (way back when) from Perrin Kaplin that said that the Wii would be able to connect to external USB hard-drives; later on this statement was corrected and they said it wouldn't be possible.

I could be wrong but I suspect the reason for this is that usb external hard-drives probably use a FAT32 or NTFS file system which are technologies which are owned by Microsoft and it is unlikely the Wii was designed to use them. This leaves Nintendo with the options of selling a Wii specific hard-drive or selling a driver through the virtual console. Personally I would love it if it was a driver because before christmas I bought a 250GB external hard-drive on special for $99 (cdn) ...