The update isn't forced as you have to agree to it and all reports I read gave it a green light or I thought "prft WADs, good riddence, I'm not pirate" but no rebooter and no downgrading was crossing the line. But without it you won't be visting the Wii shop (I like buying my Wiiware but I am starting to despise NOE and their rubbish choices* or release and Nintendos cruise control of the whole thing**) or playing any games that may have it (game discs seem to be months behind on updates so I doubt the update will be on Animal Crossing though it may be) so its a bit of gun to head.
I'm told Wi-Fi games still work without updating but I think the news channel doesn't...
I actually like the news channel with the globe and all...Thats the thing the update is still 3.3 but all it does is basically tighten the screws that should have been tightened months ago (protecting every IOS against fakesigning, preventing instalaiton of fake-signed stuff) oh and updates the user agent and custom java script the Wii Shop uses for stuff (Yes and No are swapped somewhere or other and some slight page tweeks).
So basically if Nintendo were to put an update list out Wii Shop "updates" would be the whole list. Better than 3.3s block the twilight hack (
but thankfully be so poorly programmed it is worked around) and move your miis from the parade and plazza (
who cares?)
I think with Nintendo firmware big things happen on the whole numbers. 3.0 added the USB keybaord support for trying your Mii names

and I think 2.0 allowed to move channels with A+B. It doesn't take a rocket scientist to figure out 4.0 is.
Iwata: In Spring 2009 you will be able to download Wii shop games to SD card.
Everyone: And run them from SD?
Iwata: *laughs*
Miyamoto: *laughs*
Sakurai: *Now Loading...*
*-Today we got Home Sweet Home, Tetris Party and The Incredible Maze...out of those Tetris is the only decent one and even then I can't be bothered (no 16:9 support meaning on a 16:9 set the play area is a tiny blob of the screen, all the hyped gimik modes can't be played online)...see you in 2 weeks time WiiWare where Strong Bad 3 is one of the 2, maybe 3 games...what makes it sadest is Nintendo of Europe have 3 Art Style games pretty much readdy to ship. I would have expected one of them to actually come out by now as they've had the OFLC ratings for 15 days...
**-It is starting to fragment with a slant towards the US and Japan having the most world exclusives. Why? Publishers, small indie teams are not pursuing European publishers meaning no European releases...Nintendo should be adopting titles in these cases but instead they are twiddling their thumbs while they go and nuke the one thing that unifies this (changing shop countries and getting the import channels to run) in the name of preventing piracy...
At this stage i'm 100% certain Europe will never get any WiiWare by High Voltage Games or Arc System Works while with other developers i'll give it a few months as Australian developed Pop didn't see a release in Australia until about a month and a half after the US.