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TWRoO said:
Ok now I am confused... what is ths difference between emulation and running the game from hardware?... as far as I am concerned the VC games do run through the Wii hardware.
 

Wiis contain the emulation code for older consoles just like the newer PS3s do for their backwards compatibility. Older PS3s contained the actual hardware to run PS2 games which made them more expensive. Think of it in terms of a PC. If you download a Game Boy emulator your PC doesn't suddenly contain a Game Boy, it just contains software which can run Game Boy games.

On the Wii Gamecube games run on the actual hardware as do Wii games. WiiWare will also run on the actual hardware.

The Wii will never be able to include a PlayStation emulator for the VC because Sony wouldn't let them. But they could include some PS games on WiiWare if they were recoded (ported) to run on the Wii, weren't branded as PlayStation, and Sony no longer had the rights to any of them.

Does that make more sense?