You still will be modding it (softmod) if you install the homebrewchannel.
But to answer your questing. The homebrew channel is limited to what it can play. It will not play Wii game disc but can be used for homebrew Apps emulators and multimedia.
Originally posted by pho3nix: Its possible run isos in homebrewchannel like PSPcso, or XBOX decompressed games in disk?
I know wii have only 512mb flash disk, but i can connect a external disk to usb 2.0 in back of wii and use this?
Theres currently no way to load isos. Not through the homebrew channel, twilight hack or anything else. The only way to play backup games is through the use of a modchip. With the twilight hack or homebrew channel you can install virtual console games however.
The wii also does not currently support external USB drives of any form and only accepts SD cards up to 2gb.
However, With more and more people developing in the homebrew scene, we are beginning to see much improvement in what we can actually do.
There are some programs that actually support the loading of homebrew apps from an external USB Thumb Drive. So in all reality, the Wii does in fact support them to an extent.
There is no way to run ISO's from the homebrew channel and more than likely there wont be any way to do so in the future, because the people that made the HBC do not support piracy.
This does not however mean that somewheres down the line, some crafty coder will figure out a way to create an ISOloader that can be used from the HBC. This is purely speculation though.