First Wii Mod Chip Shipping Out
From the article it sounds like this hack is very similar to the XBox360 DVD firmware hack in that it tricks the system into thinking the disc is a different type than it really is (pressed as opposed to DVD-R). However, the executables are still signed and the only thing this enables is "back ups" aka piracy.
This strategy will not enable custom user applications which is what a lot of us really want. However, this is definitely a step in the right direction. Even though the executables are signed, it is likely that the data on DVDs is unencrypted. Maybe by modifying this data a more effective exploit can be found?