I want 16 person Super Smash Bros. matches.

SSBB, 25 for all.

I suppose somebody could develop a game that does not require the analog stick/nunchuk, and instead uses two Wiimotes. If that were a four player game you would need eight Wiimotes on one console (though, as stated, I don't think this is technically possible if the Wii conforms to bluetooth standards).

Outside of the current obvious peripherals such as the balance board, a keyboard and mouse, and a headset, it's possible that a future redesign of the DS will add bluetooth functionality as well. The Wii could have been built with that possible expansion path in mind.

I fully expect to someday see multiplayer Wii games and channels that utilize the DS as their only input, such as a trivia channel similar to what you see in every sports bar and wing joint in the US, where the DS Lite replaces the old NTN "Playmaker."

This is a really weak argument (I realize it's from the article, not you).  The Wii remote is capable of turning on multiple lights to show how much battery power is remaining.  When battery power is full, all 4 lights flash when the remote tries to sync up, when it's low, only one light flashes.  Do they really expect a game to turn on the lights in binary to tell people which player they are?  That's pretty silly.

Not to hi jack the thread, but 8 players in one room can be fun.

http://vgchartz.com/forum/thread.php?id=11799&start=0#end

7-15 bluetooth connections can mean more than 7-15 remotes. For example, it may allow for 4 remotes & 4 wireless bluetooth headsets, or whatever else.

I think this is something we will (hopefully) see in the future; it would make sense, at least...

Perhaps I am missreading your post, but it seems you are saying there might be a problem with the IR portion of the Wii-Mote setup with more than 4 Wii-Motes. This doesn't really make sense though since the IR LEDs in the sensor bar are not actually transmitting data. All that needs to happen for the IR portion to work properly is for the IR camera to see the LEDs. This shouldn't weaken the LED signal any more than observing a light bulb weakens its output (which is to say it doesn't weaken it all). The data about the position of the IR LEDs is transmitted back to the Wii over the bluetooth connection.

Surely everyone would be hitting each other if there were all those people right next to each other in one room, even if it is technically possible

I know of a few games which tout 8 player via one player holding each wiimote or nunchuk.:

For one:
http://www.vgchartz.com/forum/thread.php?id=6681

Bust a move also had this and Platchen will as well (they say 12 player, actually).

And for the record, I always thought 8 player SSBB with 4 on Wiimotes and 4 on GC controllers would be awesome. 

 If the game is cool it will!