The Paper Mario Bricking scenario was a series of unfortunate events.
Paper Mario was released in US before EU. Some hardcore players ordered a copy of the game from the US and played it on their PAL Wii. A few of these players had never connected the Wii to the internet. The modchip prevented the region checking and allowed the disc to boot. On bootup the disc determined that the firmware version was old and asked to update it. This keeps the Wii from booting.
In other words, Wii's with an internet connection and a mod chip can play Paper Mario with no problem.
Wii's with no internet connection and no updates can be damaged if you allow Paper Mario to apply the on disc update.
If you look at the current stock of popular mod chips there has been NO effort on nintendos side to block them. Chips designed for the original version of the Wii still work with the latest (with updates or wired installs)
Paper Mario was released in US before EU. Some hardcore players ordered a copy of the game from the US and played it on their PAL Wii. A few of these players had never connected the Wii to the internet. The modchip prevented the region checking and allowed the disc to boot. On bootup the disc determined that the firmware version was old and asked to update it. This keeps the Wii from booting.
In other words, Wii's with an internet connection and a mod chip can play Paper Mario with no problem.
Wii's with no internet connection and no updates can be damaged if you allow Paper Mario to apply the on disc update.
If you look at the current stock of popular mod chips there has been NO effort on nintendos side to block them. Chips designed for the original version of the Wii still work with the latest (with updates or wired installs)