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Pete_Beast said:

Also, could this be a problem of hardware? Is the Wii not built for this?


Yeah, the Wii is not powerful enough to handle internet data.

On a more serious note, online in Brawl has improved A LOT compared to the first few days. It also depends on how the user has it's connection set-up. I easily see Nintendo improving the service as much as they can on their end.