"What if I take my REV to my friends house to play some Super Smash Bros. Revolution LAN (please...for the love of god please), do I just plot it somewhere in his house and play? Or does he need a wireless router to send information back and forth so that we can play? Rumors speculate the first of my options, but I'd like to here what you think. "
The WiFi protocol has two components. Infrastructure mode is where the device (in this case, Revolution) looks for a router to connect to. In this case, the router manages handing out IP Addresses, DNS, all the stuff that makes the internet work. Infrastructure mode is much like a Client/Server relationship, with one server, but many clients.
The second component is Ad-Hoc mode, which is where a device like the Nintendo DS would either look for another Nintendo DS to act as host (a pseudo-router, if you will), or will act as host for other devices, but once in the network, it's more of a direct connection. In Ad-Hoc mode, it's assumed that the devices are only communicating with each other, and is a much simpler way to get connected. This is a Peer-To-Peer relationship, where essentially, all of the devices communicate directly with one another, with no real central authority.
I would have to assume that Revolution will be looking for a router to connect to primarily, so it would be an Infrastructure mode device. It depends on how much of that Nintendo wants people (read: kids) to have to manage. Setting up a wireless network is simple, but not exactly easy when using disparate devices. If Nintendo wants Revolution to be a zero-configuration device, I'd assume that it will look for a router, and if it doesn't find one, starts looking for other Revolution devices (to create a mini-LAN).
I don't rule out the possiblity that Revolution might be able to act as a wireless router itself, but I can't see Nintendo adding this kind of complexity to the device.