I saw a response from someone on another website who suggested that Nintendo might do the following:
"1) Compression. The games get compressed on the existing internal storage and decompressed as needed.
LIKELIHOOD: Not very
REASON: Compression is nice, but if you have everything compressed, where does it expand to as needed? You could limit compression to guarantee that the biggest allowed game could expand, but that's not likely.
2) Offline storage, like what Valve and Steam are beginning to offer. This means that you can purchase a game and it stays on a Nintendo server somewhere. When you want to play it, they either send the whole thing or stream it to you as needed. When you want to play something else, the new games overwrite the old ones as necessary.
LIKELIHOOD: Very High
REASON: Nintendo doesn't want to provide external storage, because that's how those pesky pirates manage to crack things and trade them at will. If the game stays on the Wii's internal memory or on their servers, that lessens the pirating abilities. The issues here are bandwidth, availability, server uptime, etc., not to mention the associated cost. Will it be $19.95 a year for a "Nintendo Wallet" or something like that? I have no idea.
That also goes with Nintendo's strategy (as mentioned) of making it as simple as possible. No new SKUs, no extra hardware at all -- just an optional offline storage solution that's completely in their control. Will it work? Probably, but not without some grumbling.
If there's another viable solution to the storage issue that doesn't involve any external storage solution, I'm all ears. I can't think of it though."
http://blog.wired.com/games/2008/06/nintendo-no-ext.html----
Offline storage idea has been the most realistic idea for dealing with the situation other than screaming for a hard drive and if Nintendo has a way where I won't have to make more room for something I'll never use or only use for the Wii then I'm down. The idea of buying a Wii specific hard drive irritates me- mostly because I just bought a terrabyte of drive, though I doubt it would be as expensive.