Smash of Delay is ok with me...as long as Sonic is NOT the only character they add for this update...and perhaps it also means that we will get voice support in the game.
If I was Nintendo I would delay Brawl and Battalion Wars 2 until I could get voice chat in the game, and I would try to push up Wii Fit and perhaps even Super Mario Kart Wii for 2007 holiday season, because Kart online doesn't need chat ability, and Wii Fit would be a killer device for this holiday season.
Nintendo gamers would still have the powerful Super Mario Galaxy as their big holiday game, and it would mean that 3rd parties would have a better holiday season on the Wii, killing that stupid concept that 3rd parties can't make a profit on the Wii.