The official word regarding the latest Wii system update and the Homebrew Channel is in. Those interested in adding the channel to their Wii might want to think twice before updating their system, as the latest update causes installation processes to fail. Although the newest firmware apparently has no effect on existing homebrew data, it will be impossible for new users to install the channel with the latest update. Unfortunately, the update is mandatory in order to access the Wii Shop Channel.
On the bright side of all of this, faster loading times with the Wii Shop Channel have been reported and the creators of the homebrew channel will undoubtedly discover or invent a workaround as they have done previously.