Well since the redesigned Wii doesn't carry backwards compatibility with GC the only thing you are really losing is the internet connection.

Does anyone actually use internet capabilities on the Wii?
If you're not a SSBB player I'm willing to bet no or at least not really.

Sure for hardcore gamers this thing is a big no no. But has Nintendo ever really appealed to hardcore gamers? It seems that Nintendo has usually stuck to the casual crowd and this thing would suit a casual person just fine.
Nintendo's online capabilities are garbage regardless. I would have seen this appeal to a lot of people had it been released earlier. Thats the only real downfall I see here.