Would it be possible to do this? A linux distro with devkitPPC and libogc would be useful so that the user wouldn't have to go back and forth with an sd card, especially in cases where wiiload is unavailable due to external data files being required. You could edit, recompile + reboot...
Has this been done already? I might have a crack at making a filesystem tarball but I'm none too good at that sort of thing :/