In order for the Wii U to run actual Wii software it must enter Wii mode to do so. The reason for this is so that every nook and and crany of the game is emulated properly. When one piece of hardware emulates another it must uses its own hardware to accomodate what it is emulating. For example, when the Wii is playing a VC title for the SNES, such as Chrono Trigger, for example, the Wii is no longer a Wii as you see it but an actual SNES. The Wii conforms its own technology to suit the emulator that it is powering. Therefore the Wii has entered "SNES mode." The reason for this is so the game can be run properly without glitches. Now, in the case of the Wii U's VC, Nintendo has to retool the code of emulator in order for the ability to use the Gamepad for Wiiware and VC titles.