What do you think the best solution is? An external hdd? Bigger SD cards? Flash Memory?

Or what I'd really prefer along the lines of initial memory is to send my Wii to Nintendo and for them to upgrade the internal memory from 512mb to 2-4gbs and then we can work off of that. 

Just allow use of data off the SD cards. You wouldn't have to send in the system, and it would apply to all Wiis with a connection to the web.

If it were that easy, then why did Nintendo not allow it in the first place?

Because they'd probably rather a solution that makes them money.

Because the files as they are seem to be hard to pirate. So once active versions become just as secure, active use becomes the standard. 

I think the best solution is to open both the SD card slot and the USB ports for executables. Pretty much everything gets cracked anyway, so instead of keeping out the piracy, Nintendo is inconveniencing the honest customer by this limitation.

I think far more damaging than piracy would be to give the impression that the Wii is incomplete by introducing a proprietary only option. That could make future purchaser decisions more complicated (a la X-mote...)

Well this doesn't seem to have yet. If it did, Nintendo would likely not have bothered. Inconvenience or not, Nintendo is really anti-pirate, as they are a limited company and games are their biggest revenue. So they are going to make absolutely sure it's as secure as it can be, if not perfectly secure. 

SD cards please! They go up to 32GB now, we'll soon see 64GB and so on cards released over the next few years (yes I realize if you're rich you can already get a 64 and 128 GB cards).

I purchased a 4GB card for my Wii before it launched due to some moronic Nintendo spokesman stating SD cards would be used for VC games. It's about time they fixed this mess.

Also, a USB solution would look ugly on the Wii. SD cards hide away in the front where no one would even notice it.

SD card or Flash memory, whichever has faster data transfer. They both have enough capacity, and are smaller and more reliable than HDD

@Joora: SD cards have faster read speeds then the DVD rom drive on the Wii (most offer a min of 2x the read speed of the Wii's DVD drive unit) so read speeds are a non issue. Write speeds will be as fast as you can write to the internal memory on your Wii, so both are a non issue.

By flash memory I assume you mean USB? SD cards use flash BTW.