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There were actually a couple of Wii U games that streamed data from internal storage even when running from disc: Xenoblade Chronicles X and Breath of the Wild.
It was rare, but it could be done.
Soundwave said:

I can kinda see why Nintendo was frustrated after the GameCube, they had made great hardware and fixed just about every problem from the N64 and even landed massive exclusive deals like Resident Evil, one upped the PS2 in hardware and basically got no credit for any of that effort. 

They did a great job on hardware with the Gamecube, but where they fucked up was making their console look like a toy (I like the look of it myself, but it clearly wasn't what people were looking for at the time) and messing up a lot of their franchises with weird experimental shit like Wind Waker, Double Dash, Mario Sunshine, DK Jungle Beat, Starfox Adventures, etc instead of just doing proper sequels to their N64 games.

DVD capability would have helped too, but as with the N64 their fear of piracy bit them in the arse.